Category Archives: Debt
As Student Debt Bubble Grows, Lawmakers May Have to Rethink Requirements for Discharging School Loans
In many cases, consumers with overwhelming debts are surprised at just how quickly bankruptcy can help them get back on their financial feet. But in recent years, there’s been one form of debt that bankruptcy can’t readily relieve: student loans. Current bankruptcy laws require what’s known as an “undue hardship” to discharge student debt. Debtors… Read More »
Bankruptcy May Help Consumers Caught in Cycle of High-Interest Payday Loans
Payday loans are supposed to be a last-resort method for covering sudden, unexpected expenses. But as NBC News reports, a growing number of people are relying on these expensive short-term loans for routine costs like house payments, rent, groceries, and utility bills. Recent data shows that 12 million people used payday loans in 2010, and… Read More »
Rising Bank Fees Put Strain on Consumers Saddled with Credit Card Debt, Other Obligations
Banks are supposed to protect our money. But these days, they seem to be nickel and diming us out of every cent. According to a recent survey, the nation’s biggest banking institutions are piling on new fees – and increasing the minimum balances customers must maintain to avoid those fees. For instance, the average monthly… Read More »
For Young Consumers Burdened by Debt, Bankruptcy Can Be Smart Long-Term Solution
Consumers in the U.S. now owe 11.4 trillion in debt, according to The Wall Street Journal. If divided among all the households in the country, that would be $96,000 per residence. However, a disproportionate amount of today’s debt belongs to young people. As more young Americans take out large loans for college and struggle to… Read More »
More Parents Struggling with Kids’ Student Loan Debt in Chicago
Young adults aren’t the only ones struggling with the nation’s $900 billion student debt load. Parents are shouldering the burden, too, say Chicago bankruptcy attorneys. As SmartMoney reports, borrowers over the age of 40 are responsible for about one-third of the country’s student debt. Some of these borrowers are still paying for their own school… Read More »