Americans often rely on using credit to make both necessary and luxury purchases. Unfortunately, this consumer culture has led to a great deal of credit card debt in the country. The inability to pay bills on time, and making only minimum payments, could result in interest atop mounting expenses, and a vicious cycle of continuously owing money.
The effects of low consumer spending have hit several retail businesses hard. People are seemingly visiting malls less, as hard economic times lead to more cautious spending. In this type of climate, consumers and businesses are all dealing with financial strain, and many people are considering filing for bankruptcy.
Many New Jersey residents and other Americans spend money beyond their means by using credit cards, but a recent survey conducted by Gallup proved that this notion might be changing.
A clause in the private student loan agreements for students in New Jersey and around the country helps to spur the debt burden facing recent graduates. Borrowers who used a parent or other relative to co-sign have recently been forced to pay the entire loan balance right away if that relative passes away. Many borrowers simply do not realize that these clauses exist when they sign the regular agreement, but a family member passing away can leave students few other choices than to accrue credit card debt.
After seven years of slogging through record numbers of foreclosures, there may be a light at the end of the tunnel for the New Jersey court system—and for struggling homeowners. New Jersey court officials are making strides unclogging a backlog of foreclosure cases and sorting through all of the twists and turns in cases that may involve foreclosure fraud and “robo-signing.”
Even as bankruptcy filings are decreasing across the country, a new surge in filings may be just around the corner here in New Jersey. As baby boomers reach retirement age without sufficient funds to support themselves, filing for bankruptcy may become necessary.
Being in over your head with credit card debt can feel embarrassing and overwhelming, which is why many people stay in a state of denial. They may push financial worries out of their minds while continuing to spend money they don't have. These individuals may even find themselves lying to friends or loved ones because they don't want to face the reality of their financial situation.
A couple of months ago, we wrote about the decreasing number of bankruptcy filings in the U.S. On the surface, it sounds like a great development. However tempting it is to jump to this conclusion though, it may not be the case. For example, just because fewer people are filing for bankruptcy does not mean they aren't racking up debt in areas that can't be addressed through bankruptcy. More specifically, student loan debt -- which is extremely difficult to discharge through bankruptcy -- is a massive problem for many people in the U.S. right now.
Cancer is a devastating diagnosis. An individual often thinks primarily of the health ramifications of being diagnosed with cancer: Is it treatable? Will I lose my hair? What about my family?