Growing Consumer Denial About Overspending Contributes to Debt, Chicago Bankruptcy
A new survey shows that half of Americans spend more than they earn for at least part of the year.
Yet only 1 in 10 believes they are living beyond their means, reports MSNBC.com - and the number of consumers in financial denial may only grow as the economy picks up.
During the recession, many U.S. consumers pared back costs but still had to fall back on credit cards to cover the gap between earnings and expenses.
Family finances have suffered as a result. Often times, folks will wait for their credit score to hit rock bottom before seeking relief through Chicago bankruptcy.
Now that the economy is showing signs of improvement, experts are seeing hints that consumers are ready to start spending again. For instance, borrowing for student loans and cars increased this spring.
Unfortunately, our finances may not be as ready for a recovery as we are.
Median household income in the U.S. is down 7 percent since 1999. Americans have little savings, and more than a third admit to dipping into those savings to pay the bills. Another 22 percent admit to using credit to cover the gap, while 12 percent of us say we delay paying the bills when we don't have the money.
Until we're honest with ourselves about living beyond our means, how can we regain financial control?
Since most consumers don't have much control over income, it's up to us to control spending. If your family is drowning in debt, Chicago bankruptcy can be a lifesaver.
By reducing or eliminating financial obligations, bankruptcy may allow your income to cover the mortgage payment, health insurance premiums, and other important bills.
When you can stop relying on credit cards to make ends meet, you can stop worrying about interest rates, late fees, bill collectors, foreclosure notices, and all those other concerns that keep Americans up at night. Debt relief equals stress relief.
Want to find out if bankruptcy could be the solution for getting your finances back on track? Call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 to speak with one of our experienced Chicago bankruptcy attorneys. Call today for your free personal debt analysis.
More Blog Entries:
We're Overspending, And We May Be In Denial About It, by Allison Linn, MSNBC.com