Constantine von Hoffman, with CBS Money Watch, writes that many, many Americans owe more in credit cards than they have in savings. Close to half, in fact. Hoffman quotes the chief financial analyst of Bankrate.com: “This is a reflection of the stagnant incomes, long-term unemployment and high household expenses that are hampering the financial progress of many Americans.”
Hoffman goes on to describe a number of other negative points when it comes to financial security:
· The overall personal savings rate has fallen
· Consumers have increased their spending (such as to finance last year’s holidays)
· Consumers’ “comfort level” with savings is down
· 44 percent of households have fewer than three months of emergency savings in the bank
What does this mean?
It certainly doesn’t mean the sky is falling, but it does indicate that we are still struggling in this economy. And if we’re struggling, it means that at least some of us will be contemplating bankruptcy as a way to get relief.
Bankruptcy is a bad word, but it doesn’t have to be. In bankruptcy, you can get rid of all credit card debt, and if you’ve reached the point where you’re considering filing, chances are that you might be behind on payments.
One missed payment can mean skyrocketing interest rates and years before you can pay off your debt. Bankruptcy can put an end to that.
Credit Card Debt Rears Its Ugly Head Again