As Economy Improves, Many Consumers Are Still Weighed Down by Debt in Atlanta
The economy may be showing signs of improvement, but our finances are another story.
One in five U.S. families currently have more in debt than they have in savings, according to a recent USA Today report.
Even worse, some of us have no cash cushion at all. By the end of 2011, 23.4 percent of families reported having a savings balance of zero - up from 18.5 percent in 2009.
Despite our savings shortcomings, new research shows we have no plans to stop accumulating debt. This month, the Federal Reserve reported that consumer borrowing for car and school loans increased in March. Consumers also increased credit card use.
Meanwhile, median household income in the U.S. is still 7 percent lower than its 1999 peak.
Americans are caught in a vicious cycle. Not only are we spending more than we earn, but we're spending more than we have, period.
It's no wonder that thousands of homeowners say they expect to fall behind on mortgage payments any day now.
If we want to move beyond the recession, we've got to move beyond overspending. For millions of Americans, that means lowering debt. For those with overwhelming debt burdens, Atlanta bankruptcy is often the most realistic option.
Debt has the power to bog down every area of a person's life. As debt grows, so does the amount paid in interest and fees, requiring families to rely on more debt to make ends meet.
Maxing out credit cards leads to a lower credit score, which in turn leads to higher interest rates. Meanwhile, debt payments steal away funds that could be going to pay the mortgage.
By filing for bankruptcy in Atlanta, consumers can eliminate some or all of their credit card debt. With the burden of debt relieved, you'll be able to afford current bills - and catch up on delinquent ones.
Without savings, you don't have a safety net. One missed paycheck or unexpected bill could spell disaster. Bankruptcy can provide the protection - and peace of mind - your family needs to move forward.
If you think bankruptcy may be the boost you need to get back on your financial feet, call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 to speak with one of our experienced Atlanta bankruptcy attorneys. Call now for your free one-on-one debt analysis.
More Blog Entries:
Home Equity Loss Not the Real Cause of Homeowner Debt in Atlanta: May 8, 2012
Credit Damage from Unpaid Medical Debt Prompts More to File for Atlanta Bankruptcy: March 19, 2012
Additional Resources:
Recession Added Debt, Drained Families' Savings, by Christine Dugas, USA Today
We're Overspending, And We May Be In Denial About It, by Allison Linn, MSNBC.com