Despite Small Declines in Debt and Delinquencies, Consumers Still Rely on Credit Card Debt in Tennessee


 The good news is that credit card debt fell in the first quarter of 2012.


The bad news is that a large number of Americans are still unable to pay basic expenses such as the mortgage, rent, groceries, and insurance without the help of credit - making high interest rates, credit card fees, and poor credit scores practically a given.

In a recent survey of low- to middle-income families conducted by policy center Demos, credit card debt in 2012 was $7,145, 27 percent lower than in a similar 2008 survey.

Overall, national credit card debt has declined $242 from late 2011, to $4,962, reports TransUnion.

Yet 40 percent of those surveyed by Demos couldn't pay standard living costs without credit because they didn't have enough in personal bank accounts.

Much of the debt revealed in the survey was accumulated as a result of unemployment and medical bills. In fact, 86 percent of participants who had been jobless in the past year say they took on credit card debt as a result.

While the Credit CARD Act - which went into law three years ago this May - has made it easier for consumers to make larger payments and avoid surprise rate hikes, paying off debts of $10,000 or more can still take decades.

Many borrowers get caught in a vicious cycle in which the only way they can afford to make minimum payments is by opening up additional lines of credit. As their balances increase on multiple cards, interest and fees rise while credit scores plummet.

No matter how many consumer protection laws are enacted, creditors work to make sure credit card debt is easy to get into but nearly impossible to get out of. If you're overwhelmed by debt, Tennessee bankruptcy can offer a solution.

Chapter 7 bankruptcy was specifically created to provide struggling consumers with relief from mounting unsecured debts such as credit card and medical debt.

Immediately after filing, consumers are protected from creditor harassment. Debt can sometimes be eliminated in just a few months - or, in some cases, weeks.

Waiting for your financial situation to get better isn't a smart strategy. Without intervention, large debts tend to grow larger with time. By filing for Tennessee bankruptcy, it's possible to reduce or completely eliminate debt - and the problems that come with it.

Комментарии

Отправить комментарий

Популярные сообщения из этого блога

To Repair Finances, Consumers Must Take Pragmatic Approach to Cutting Costs, Filing for Tennessee Bankruptcy

Изображение
 American consumers are traditionally pessimistic about the national economy. Yet when it comes to our own economies - our family finances - we can be optimistic to the point of default. From mounting credit card debt to missed mortgage payments, today's average consumer faces big financial troubles. But when it's time to fix our finances, we tend to take baby steps. We chalk the money problems up to a temporary issue, like those unexpected car repairs or that bigger-than-anticipated medical bill. Lawyer office in Michigan . We optimistically hope for a solution, such as that pay raise our boss mentioned last year. We might make a few budget tweaks here and there, but for the most part we continue spending as usual, using credit cards to cover the gap between income and expenses. Before long, our credit cards are maxed out, our house is on the verge of foreclosure, and that raise that we were holding out hope for never came through. Half-baked solutions produce half-baked
Далее...

Tennessee Bankruptcy Can Assist Mortgage Holders Not Helped By Bank Settlement

Изображение
  Federal and state governments have struck a historic $26 billion dollar settlement with banks accused of wrongfully handling foreclosures. Of the total, $146 million is earmarked for Tennessee, according to the Memphis Business Journal. The five big banks involved in the deal were part of a nationwide investigation of improper foreclosure practices in which mortgage servicers used robo-signed documents and other potentially incorrect information to unfairly throw people out of their homes. By hashing out the agreement, lenders were able to avoid criminal prosecution. Money resulting from the settlement is intended to help prevent more foreclosure problems, ease the current mortgage mess, and assist some of those who lost their houses. Unfortunately, Tennessee bankruptcy lawyers say it may not do much good for those who need it most. Most of the money is being distributed to help state and local government agencies better enforce fair lending practices. Lawyer office in Michiga
Далее...

Tennessee Bankruptcy May Help Homeowners Hit by Second Wave of Foreclosures

Изображение
  It looks like a recent drop in Tennessee foreclosures was just a brief calm before the storm, according to The Tennessean. In 2011, approximately 11 percent of Nashville area home sales were related to foreclosures - a one-third decrease from the previous year. Now the number is expected to rise to as high as 15 percent. Though it's still lower than the foreclosure rate at the peak of the mortgage bust, the prolonged downward pressure on prices is sure to have a negative effect on consumer confidence, which is an important factor in economic recovery. Foreclosures were put on hold in recent months as banks were forced to sort through the mess they created by allowing forged and robo-signed documents. Lawyer office in Michigan . Now that the $26 billion mortgage settlement has been announced, lenders are getting back to business. With 864 bank-owned properties in 2011, the Nashville metropolitan area already has one of the highest rates of mortgage defaults, auctions and bank
Далее...