If you think your debt is bad then you should take a step back and look at the numbers representing the entire country. Recent reports from the Federal Reserve show that the total amount of U.S. consumer debt is tipping the scales at $2.5 trillion. That is a big total. So big, in fact, that if you break it down it equates to $8,100 for every single person living in the U.S. And that number does not include secured debt associated with mortgage values.
Revolving credit, or credit that rolls over month-by-month, made up about 36 percent of all consumer debt, according to numbers released as recent as November 2009. Credit card debt is the most common type of revolving credit.
Roughly 64 percent of all consumer debt stems from one-off loans such as car loans, student loans, boat loans, trailer loans, and other small loans that can be taken out. Car loans are the main problem as most new car buyers are having to make down payments close to 9 percent of the vehicle’s purchase price.
Consumer Debt and Bankruptcy
Despite these alarming consumer debt numbers, it is important to realize that consumer debt is a fact of life and will probably always be high as long as we live in a capitalist system. In extreme cases of personal consumer debt, bankruptcy might be the only option. Bankruptcy serves as a way out of crippling debt and the chance at a fresh start. If this concerns you then it might be time to look further into the matter.
Talk to a licensed bankruptcy attorney in your area about your debts and about your eligibility for Chapter 7 bankruptcy. Then you can make an educated decision and move forward knowing all the necessary bankruptcy facts.
Related Links:
National Bankruptcy Information
