Personal bankruptcy can be a relief to those in Ohio who find that they are unable to repay the debts that they owe. The good news is that there are several different Chapters available in the Bankruptcy Code, one of which is sure to be useful to every debtor. Commonly, people go to a Chapter 7 or 13 filing when they must obtain financial relief.
A number of consumer protection laws are aimed at protecting Americans for predatory lending practices. Congress passed the Credit Card Accountability, Responsibility and Disclosure Act to address issues that could harm some people financially.
The economy and the housing crisis have placed many Cincinnati residents between a rock and a hard place. Lower valued homes and a soft economy has allowed household budgets to be strapped. It is a story that seems to be true, not only here in Ohio, but across the country and in every sector of the economy.
For many working Cincinnati area residents who, despite their income, are experiencing financial distress a chapter 13 bankruptcy proceeding can be a valuable tool to find significant debt relief. In chapter 13 an Ohio resident can often retain all of their property, while curing issues with back taxes, delinquent mortgages or digging out from a mountain of unsecured debt.
Yesterday, this blog began a discussion on credit card use and credit scores. The average consumer in the United States that uses some form of payment card, such as credit cards, debit cards and prepaid cards holds a total of 3.7 cards, according to the Federal Reserve. It only stands to reason that some consumers have a higher than average number of open credit card accounts. The higher the number of cards a consumer holds may allow for some flexibility in managing debt if a crisis arises.
A new trend in how debt is viewed seems to be emerging among America's youth. Research conducted at Ohio State indicates that young adults in the country appear to gain a boost in self-esteem when they turn to credit to finance their lifestyle. The researchers say young adults from poor and middle-class backgrounds tend to find a temporary but powerful rise in self-esteem from taking on more debt.
In the last post, this blog began a discussion of some of the warning signs that individuals, or couples in a Cincinnati household may be heading toward financial distress. Many individuals have a tendency to overlook the signs as the months pass by. In the long run, overlooking the signs may only delay the inevitable as creditors become more aggressive. In other cases, overlooking the signs early in the game may only result in financial distress that could have been avoided.