New Report Paints Mixed Picture of Consumer Debt

The Federal Reserve Bank issued a report that paints a mixed picture about consumer debt. People are no longer spending like they used to. Overall debt is dropping. That’s the good news. But people are having a difficult time getting rid of the debt they have. In the U.S, the average debt per person is $49,000. Foreclosures and delinquent payments are on the rise. Many people had to file bankruptcy to deal with their debts. Consumer bankruptcies jumped in the last quarter by 34%. Continue reading

The Home Equity Loan Trap

The default rate on home equity loans is higher than all other types of consumer loans, according to the American Bankers Association. Home equity delinquencies exceed the defaults on auto loans, personal loans and credit cards. Lenders wrote off $30 billion in home equity loans in 2009. Continue reading

Check Your Credit Report

Once you complete your bankruptcy, you need to check your credit report. The report should state that debts were “discharged in bankruptcy.” Sometimes debts discharged in bankruptcy continue to appear as unpaid on the report. What should you do if the debt does not show it was discharged? Continue reading