Mounting Consumer Debt
Debt is on the rise. This recent Bloomberg article reflects the mounting consumer debt in America. Sacramento consumer debt is no different. The Bloomberg article portrays trends in consumer debt. It analyzes debts aside from mortgages, and the trend is clear. Consumer debt is up. It is up in Sacramento the same as it is in the rest of the country.
The alarming part of the story is that income is not keeping up with the mounting consumer debt. This debt is primarily credit card debt, personal loans and payday advances. They are high interest loans. If this trend continues, something has to give. Consumers, likely, will be left holding the bag. But how?
Mounting consumer debt does not pose a problem if income is up. But it is not. At least not to the degree debt is up. When income cannot keep pace with debt, defaults result.
For those living with increased debt, bankruptcy can help. Bankruptcy is a legal process to eliminate debt. Credit card debt and personal loans are often the cause of filing bankruptcy. Payday loans only makes matters worse, and there are a lot of those loans out there. The common denominator to these consumer debts is interest. Interest rates on all these loans are high. If you can’t afford the cost of these loans bankruptcy is an option.
Filing bankruptcy is detrimental to your credit, but your debt can be worse. With mounting consumer debt in Sacramento and elsewhere, bankruptcy affords financial relief. For most bankruptcy filers, bankruptcy actually improves their credit. Why? Because debt you cannot afford is worse on your credit than a bankruptcy filing, and it can only get worse over time. Bankruptcy discharges, or eliminates, debt your can’t pay.
If you can personally vouch for mounting consumer debt,contact my office of a free bankruptcy consultation to evaluate your options.