Bankruptcy Decatur Amy Tanner
A recent quarterly report issued by the Federal Reserve of New York found that household debt increased during the first quarter of 2016. This increase was a mere 1.1%. That doesn’t sound like much but it is an increase of $136 billion in household debt from the end of 2015 and it took the total household debt to $12.25 trillion! The number of credit inquiries within six months declined by 8 million from the previous quarter. An indicator that demand for new consumer credit may be down. Increased mortgage debt accounted for $120 billion of the $136 billion increase. Auto loans and student loans were the other areas that showed increased debt. Surprising, there was a $21 billion dollar decrease in credit card debt. Another interesting factor found was that only 5% of all of this debt we carry as consumers is in default. As reported, this is the lowest amount since the second quarter of 2007. Only 207,000 consumers had a bankruptcy notation added to their credit reports during this quarter. That is a 19% decrease from the first quarter of last year. Wilbert van der Klaauw said “Delinquency Rates and the overall quality of outstanding debt continue to improve”

A five percent delinquency rate doesn’t sound that bad, unless you find yourself within that 5%. In my opinion, many consumers in the other 95% are probably struggling to stay current with their debts to the point of barely making the minimum payments on debts each month just to keep the debt our of default status. I see so many consumers on this path and many wait until it has taken a toll on their health or family life to seek assistance.

If you are struggling to meet your monthly financial obligation or are currently in default on those obligation please call our office nearest you for a free consultation to discuss getting some debt relief.


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