Recent reports have shown that the average American has $16,000 of credit card debt. Although $16,000 may not sound like much, it was only $4000 in 2008. You still have to take into account the average American’s income. The average income of Americans is now $35,000 per year, compared to $40,000 four years ago. Add interest and living costs to the debt, and you can see the potential for financial disaster.
These people are making minimum payments and are threatening to file for bankruptcy. It was reported that consumer debt exceeded $11.36 trillion at the end of January 2014. The student loan debt in the United States now totals $1.049 trillion. Although the media reports that things are improving, I see a very different picture when you consider the debt ratios and decreased income. The US government is just like the Americans. The debt ceiling has been continually raised to make it seem absurd that they have one.
The federal government owes $17 trillion, and can’t afford to make interest payments. However, they are allowed to print money to cover the debt. Federal Reserve is the largest purchaser of US debt. It’s quite cool to be able borrow money and then print fake dollars to repay the debt. It’s total crazy, if you ask me. They would probably file for bankruptcy and get rid of all their debts. Instead, they have placed the burden of this debt on the shoulders of American taxpayers, making it impossible for our grandchildren to stop spending so much.
Smart money will look at all aspects of the situation and file bankruptcy if necessary to reduce their losses, just as corporations do. A bankruptcy attorney can help people who are buried under a mountain debt to determine if filing bankruptcy is possible. Most cases will find that a bankruptcy attorney can offer some sort of solution. To determine whether a person should file bankruptcy, they need to first add up all of their debts. Then calculate how long it would take for them to pay them off if the charges were stopped today.
They should seriously consider filing bankruptcy if it takes more than five years. While it sounds easy, creditors want consumers to believe that it is much more complicated than that. To get their point across, they have spent billions on Madison Avenue. This changes the whole dynamic of American consumers. They want Americans to feel ashamed of themselves if they choose bankruptcy.
History repeats itself, and this is what’s happening right in front of our eyes. We need to make people aware of the financial catastrophe that is coming. Many Americans now use payday loans and credit cards to make ends meet. These people are effectively preparing for bankruptcy, and they don’t know it. This group should file for bankruptcy to stop the madness.
The idea of protecting credit is meaningless when the inevitable will happen. It’s easier to pull the Band-Aid off than to take it off when your children fall and get hurt. Many people believe that a miracle will occur and their situation will instantly improve because of normalcy bias. It’s only a matter of time until hyperinflation hits our shores. The Fed has printed all the money and quantitative easy in the past five years. Everyone in the US will be given a reality check at this point. Those who didn’t prepare for it will likely be exterminated.
You should stop worrying about what your creditor might think of you if you declare bankruptcy . Instead, do the best you can to preserve any assets that you have. They have made it seem like the American consumer is a failure by using the media to make them feel bad when they are in financial trouble. They don’t reveal that corporations use bankruptcy to make their companies financially stronger. It’s quite common for corporations to file bankruptcy in today’s market to end a bad employment contract that they have with a union. They will threaten the unions with bankruptcy if they refuse to negotiate. If necessary, they may even file for bankruptcy to force them back to the bargaining tables.
They could also use it to get rid of bad investments and clear the books. It’s smart business to file for bankruptcy. But, if you or I do it, we were dishonest or a failure. We must always remember who sets the rules. Many people were forced to file for bankruptcy when the 2008 market collapsed. It was able to get rid of much of the stigma it used to be associated with bankruptcy filings in the past. People should do the best for their families, and not fret about what creditors think or say.