In a recent University Survey respondents demonstrated incomplete knowledge on a range of topics related to consumer consolidate debt loans , including mortgages, basic math, and other fundamental issues. For example:

• More than half of the respondents didn't know what a subprime mortgage was while many of them have one!

• Two-thirds didn't know that total interest costs on a mortgage loan could effectively double the cost of the home. Breaking this down further, only 20 percent of respondents aged 18 to 24 identified mortgage costs correctly. In comparison, 40 percent of older respondents, aged 45 to 64, answered this question correctly. They definitely need non profit credit counseling companies
• Nearly two-thirds could not calculate 8 minus 25 percent.
• A full 56 percent didn't identify their credit score as the primary factor in obtaining a loan approval.

People don’t understand their credit cards
More than one-third of survey respondents admitted that they didn't have a budget that would allow them to repay their credit cards in full by year-end 2009. Also, three quarters of respondents didn't know that writing a bad check for $100 would be more expensive than advancing that money from credit cards, or taking out a payday loan.

Responses to the telephone survey also suggested that younger Americans were more likely to measure the price of a purchase by the size of the monthly payment. These twenty something weren't as concerned with the total cost of the purchase including borrowing fees. Consolidating credit card debt wasn’t at the top of their priorities.

Many respondents openly admitted to making poor decisions with respect to consumer debt management . And, more than half the respondents admitted that they'd over-drafted a checking account at least once in the past. This cries out for debt consolidation advice.

Tough times make matters even worst for those in debt

The University survey results are somewhat ominous, considering that the U.S. economy is grinding its way through recession. At a time when many households could experience a loss of income, it's important that consumers know how to manage their borrowing costs. Bad habits, like ignoring the total cost of financed purchases or incurring unnecessary bank charges, can be disastrous.

It is obvious the more debt loan consolidation is needed. That credit consolidators have their work cut out for them. Also that non profit credit counseling is needed by many. And that sound debt consolidation advice is more valuable than ever.