Personal Bankruptcy Good or bad
Personal Bankruptcy is a question that haunts a great many consumers today. Why does it haunt so many consumers in todays economy? Because, consumer debt is now at the highest level that it has ever been in the United States economy and very possibly the planet.
The largest debt for the present day consumer comes from home loans and automobile financial loans (of course this is known as secured debt). The second highest contributer to consumer debt is actually unsecured debt. In all actuality the use of credit cards, by the consumers, are the major cause of the unsecured debt issue in the United States of America and through out the world.
How can personal debt be the ultimate prompt, into that nightmare of deciding, if a declaration of insolvency is the only way out. Recent reports and studies show that lots of, of the major credit card organizations, have designed their system to actually ‘enslave’ the customer into their indefinite long term.
One of the most successful elements of this particular strategy is to give the consumer the ability to help to make minimum payments. Once the consumer does this only a very small percentage of the payment goes in the direction of the principal of the loan and the balance is used on the interest. At this point, the customer, taking advantage of the bare minimum payment, has just positioned themselves, into the never ending cycle of increasing credit card debt on a monthly basis.
Once the consumer succumbs, to the minimum payment strategy, they are placing the family one step nearer to individual debt financial distress. As this debt raises, from the credit card companies, life goes on and unforeseen situations arise. These types of situations can come coming from employment loss (through either spouse) or even the individual. Then unforeseen illness that can rapidly amount to thousands of dollars medical bills. In addition the illness may result in the consumer being unable to work for a good indeterminate or even permanently getting disabled. Indeed are just some of life’s unexpected concrete realities.
Once some of life is unexpected emergency’s occur as well as unsecured debt and secure debt has become completely unmanageable, then perhaps the debtor must deal with that nightmare choice, of filing for private bankruptcy.