Economy Picks Up, But Consumers Are Still Weighed Down by Debt in Tennessee
The good news is that the economy is showing signs of life.
The bad news is that the recession has left many of us with so much debt that we won't be able to take advantage of the economic improvement.
As The Tennessean reports, home construction, factory output, and employment - all important economic indicators - are on the rise. Meanwhile, consumer borrowing and spending are picking up.
Yet one in five families in the U.S. owes more on credit cards, doctor's bills, and other forms of unsecured debt than we have in our savings, according to USA Today.
During the recession, many folks were forced to dip into savings and rely on credit card spending to make ends meet. Now we're left with the burden of large and expensive debts - and no cash cushion to serve as a safety net.
Since our credit card bills are so high, many of us have no choice but to continue relying on plastic for everyday payments.
When you're spending beyond your means without any savings to fall back on, all it takes is one missed paycheck or other unexpected expense to start a downward spiral into wrecked credit and foreclosure.
Getting finances under control means getting debt under control.
If you're carrying just $10,000 in credit card debt at an 18 percent interest rate, it could take you 20 years to pay it off - and that's assuming you make every payment on time.
For families with too much debt to manage alone, Tennessee bankruptcy can be a practical solution. In many cases, credit card debt can be reduced or dismissed with a bankruptcy filing.
For those who qualify for Chapter 13 bankruptcy, filing can also stop foreclosure - even if the process has already begun.
With the weight of debt off your shoulders, it may finally be possible to enjoy financial freedom.
To find out if bankruptcy is right for your situation, call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 to speak with one of our experienced Tennessee bankruptcy attorneys. Call today for your free personal debt evaluation.
More Blog Entries:
Debt, Not Declining Home Values, Leads to Mortgage Struggles and Foreclosures in Tennessee: May 8, 2012
Concern About Student Loan Debt Drives Discussion Over New Tennessee Bankruptcy Laws: May 2, 2012
Additional Resources:
Economy Picking Up After a Spring Slump, by Christopher S. Rugaber, The Associated Press
Recession Added Debt, Drained Families' Savings, by Christine Dugas, USA Today