American Consumers Increasingly Filing for Bankruptcy.
|
|
Jun. 2–American consumers are deeper in debt than ever before — so deep, that more than ever they’ve given up trying to pay their way out. Personal bankruptcy filings rose 15.2 percent in the 12 months ending March 31 to 1.46 million, a record for any 12-month period, according to the Administrative Office of U.S. Courts. The Federal Reserve Board says consumer debt reached a record $1.7 trillion in March, not counting mortgage loans. Online publisher CardWeb.com estimates that the average household carried nearly $8,400 in credit card debt last year; the credit card companies, according to SMR Research in Hackettstown, wrote off 6.3 percent of their loans, nearly tying a record set in 1997. Experts say part of the reason for such deep consumer indebtedness is that credit is so easy to get. But many also say consumers are borrowing unwisely because they lack the most basic knowledge when it comes to money matters. As a result, financial literacy programs aimed at both children and adults are popping up all over the country, including a new program dubbed “Common Cents Financial Literacy” for grade schoolers in New Jersey. Other programs include: – The Jump$tart Coalition, based in Washington, D.C., and founded in 1997 to promote financial literacy in schools. It includes 140 partners, federal agencies, universities, and associations. – The Consumers Federation of America, which… |