The statistics of how much consumer credit that the average American consumer has access to and uses is somewhat astounding:
Bankruptcy filings are on the rise too. According to the American Bankruptcy Institute (www.abiworld.org), bankruptcy filings in Virginia were 36,207 in 2010, up from 18,884 in 2007. Unfortunately, many people in this country live above our means, including our government, which spends more than it makes every year.
There are lots of different reasons that you might get into debt. Maybe you spent too much on that trip to Hawaii that you charged, or maybe you lost your job and can't pay the small loan for the car you bought to get to work. Regardless of how it happened, falling into debt is a slippery slope. Once you start taking on debt, you may find that you have to take on more debts just to cover your expenses.
There are a lot of downsides to having more debt. Of course, you owe more money and will have to pay it back with interest. If you miss a payment, your creditors may raise your interest rate and charge you fees, so you'll owe more money. When you carry higher balances, your credit score will go down so you'll have to pay higher interest rates for any loans that you take out. Finally, if you go into default on any of your balances, your creditors might sue to have money taken out of your paycheck to pay back the loan, or they might take back the collateral for the loan like your car or your house.
Managing Your Debts
Most consumers don't want to go into debt, and they intend to balance their budgets, yet for many, it never seems to happen. Why? Many people don’t know the warning signs of debt problems and they don’t know where to go if they need help with managing their debt. How can you tell if you have too much debt? What are some strategies to avoid borrowing? What can you do if you have problems paying your debts? Let's answer some of these questions in the presentation.
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Bankruptcy
Individuals who are so deeply into debt that they cannot ever pay their bills may need to consider filing for bankruptcy to wipe out their debts and start over. In this interactivity, you will learn why this option can have a serious impact on your credit future, but why some people need to take it into consideration. Click the player button to begin.
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