With unemployment at its lowest levels in the recent past, one would think consumer spending would be up. However, according to a Fitch Ratings report, consumers are reluctant to take on debt – still shell-shocked over the fallout of the economic recession.
It stands to reason that less debt means fewer people in debt. The report claims that prudent consumerism is a major factor in a record drop in personal bankruptcy filings. In fact, Fitch forecasts, for the first time in seven years, the total number of 2014 personal bankruptcy filings will drop below one million. This represents the fourth year in a row these figures have steadily declined.
“Wage growth is not keeping pace with the labor market improvement and there are still a high number of discouraged workers, which is also driving consumer consumption declines,” says Fitch Senior Director Steven Stubbs.
While this is good news for the U.S economy overall, statistics mean nothing to a family in over its head with financial debt. Medical expenses, lost wages and, yes, poor planning, can quickly add up to a mountain of debt. That’s where bankruptcy protection comes in. It’s a complicated process but, with the correct guidance from a skilled, experienced bankruptcy attorney, you can properly use bankruptcy protection to get your family out of the hole and back on the road to financial health.
Contact the Law Office of Joel R. Spivack for bankruptcy advice. He has been guiding South Jersey residents through the process successfully for decades. He can help you, too.