Getting Ahead Of Your Debts, Is Bankruptcy An Option? Call And Let’s Talk About It.
According to the Federal Reserve Bank of New York, Americans added $312 billion in debt during the second quarter — an increase that New York Fed researchers called ‘pretty sizable.’
Further, the American households added an extra $46 billion on their credit cards during the second quarter of 2022. Balances had the “sharpest increase in more than 20 years”, according to the Federal Reserve Bank of New York. Further, “[i]ndividual credit card debts grew 5.5% from the first to second quarter and 13% year-over- year. The annualized increase was the sharpest cumulative increase in more than two decades” New York Fed researchers said.
According to Market Watch, on August 4, 2022, “Overall, Americans added $312 billion in mortgage and non-mortgage debt during the second quarter — an increase that New York Fed researchers called “pretty sizable.” In fact, it’s the largest nominal increase since 2016, a New York Fed statement noted”.
Debt across the board is becoming more and more delinquent. This includes delinquencies in credit cards (3.35% up from 3.04%), car loans (1.81% up from 1.61%) and mortgage debt
What does this mean for the average household? By being delinquent, you are paying more out on money that is already stretched as far as it can reasonably go. The problem is that with rising inflation, gas prices changing so drastically, food prices soaring and then plummeting, how can one person or household plan for the future, or just perhaps, next month?
Chapter 13 Bankruptcy may be an answer for some. It stops interest from accruing, it limits spending (as you must propose a budget), it prevents credit cards from reporting late payments, and overall can make your credit score increase. This is just a few of the ways we can use the bankruptcy system to help the consumers.
Call for a free consult today. (973) 576-5285 - The Law Office of Stuart M. Nachbar, P.C.