Household Debt Increasing
Household debt increasing is a sign of a strengthening economy. Not since the credit meltdown of 2008 has credit increased so significantly. It is a good sign for the economy. But it signals potential problems for borrowers.
The revitalized economy creates greater household income. This has fueled further debt. The issue, then, is whether the economic uptick can sustain the household debt increasing at its current level. Time will tell.
The positive spin to household debt increasing is rising consumer spending. This further strengthens the economy. This recent New York Times article portrays the current economic and debt climate of American households. This is certainly a good thing. The more we spend on consumer goods and purchases, the more we grow American business. No problem here.
Household debt increasing can become problematic if debt spending overtakes consumer spending. With the revitalized economy comes increased costs of borrowing. Interest rates on consumer loans and credit cards are on the rise. This makes paying these debts more expensive. If income does not rise at the same level, defaults can occur. This is what happened a decade ago during the Great Recession.
If household debt increasing causes inability to keep up with the debt payments, consumers may be left with few choices. Student loan debt increases are particularly problematic. The more people pay on the student loans the less they have available for other consumer debts.
The student loan increases mirroring the increased cost of tuition is tough debt to eliminate. Even in bankruptcy these loans can rarely be eliminated. But other consumer debt can. So with household debt increasing, bankruptcy may be an option to discharge, or eliminate, credit card debt and the like. Doing so can free income to pay off student loans. It can also free up income for the increasing costs of living. Filing bankruptcy may not be for everyone. But it is a good option for some. Whether living in Sacramento or elsewhere, bankruptcy is a great tool to deal with debt. Consulting with a bankruptcy lawyer is always a good idea. My consultation is free, so there is nothing to lose to consider your debt options through bankruptcy. Schedule an appointment through http://SacBankruptcy.com.