Blog about Filing Bankruptcy in Washington DC and Maryland

Why Is Consumer Debt at Record High Levels?

According to a 2017 first quarter report completed by the Federal Reserve Bank of New York, consumer debt is now at an all time high in the United States, reaching $12.73 trillion. This means that now more people than ever before are experiencing serious debt problems. The biggest contributors to the increase in debt are student and auto loans. Reasons Why People Get Trapped in Loan Debt Bad auto loans: As with all debts, borrowers with lower credit scores are the most vulnerable. One of the main reasons for the increase in auto debt is that loans are easy to get for people with bad credit and little financial knowledge, making them very vulnerable to predatory lending practices. Taking on an auto loan with bad credit will get you a loan with a higher monthly payment and interest rate. Failure to pay on the loan can cause the debt to…
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Why Store Credit Cards Might Be a Bad Idea

A store credit card can seem like a great option for shoppers who frequent certain stores. What is the harm in getting additional credit, when you will make the money back through the awesome discounts the store salespeople are offering, right? The reality is, most people will lose more money than they will gain by signing up for a store credit card. How Do Store Credit Cards Cause Debt? Easily obtainable: Store credit cards are often issued to people with financial troubles who may not even qualify for a regular credit card. Retail associates may not be trained in explaining the true extend of the financial burden that the card entails. This causes serious debt problems for those who are already financially vulnerable. Many retailers may not even check a borrower’s credit history. Excessively high interest: The majority of store credit cards charge an interest rate on purchases that is…
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How to Get out of Debt and Start Saving for Retirement

Saving for retirement is something that every financially secure person will suggest, but is very hard to do for people with debt or limited extra income. Not everyone has the means to immediately begin saving for retirement, but there are steps you can take to make positive changes and work towards being able to save money sooner rather than later. The earlier a retirement fund is created, the more value it will have in the future. An estimate done by CNN money says that if you place $3000 each year into a retirement fund for 10 years, starting at age 25, the investment will be worth more than $338,000 assuming a 7% annual return. Before you can start saving however, you need to neutralize bad debt-inducing habits. Examples of Bad Debt-Inducing Practices Taking on risky loans: Certain loan providers offer loans with excessively high interest rates or embedded fees, and…
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