No. 1 Personal Bankruptcy Tip - How to evaluate financial potential
No one hopes to file bankruptcy. Most people struggle for years before confronting reality. Financial health, security, and quality of life all result from sound money management. Savings must be a first choice, and invested to create a safe return. Oddly, these simple opportunities seem to be just out of reach for over 90% of Americans today. Is this an accident? Are debtors who file recklessly abusing their credit? The answer may surprise you.
Visa® and MasterCard® jointly funded a comprehensive personal bankruptcy research project to determine the cause of Chapter 7 & 13 filings. Their conclusions were startling, and even seem at odds with their aggressive lobbying agenda. This study concluded that less than 19% of their cardholders abuse credit or overspend. To the contrary, over 80% of all filings are caused by 1) job loss, 2) debilitating injury or illness, or 3) contested divorce proceedings. Average US citizens have reached the limit of their monthly financial capability, and any one of these top three financial burdens pushes cardholders over the edge. This study is consistent with the conclusions of Alan Greenspan, Chairman of the US Federal Reserve.
Is personal bankruptcy the answer?
Americans today carry more debt than during any time in our nations history. More telling, this crushing debt represents a higher portion of net worth, and a greater percentage of total income than during anytime since the Great Depression. The trend remains clear - the consistent rise in the rate of filing has continued since the early 1970's. Simply put, American citizens are falling further and further behind while the financial strength and influence large businesses continues to expand. Today, wealth and profit are concentrated in the top 2% of our population while one-third of the country struggles in poverty. Over 90% of all US retirees are not financially secure and must depend on social security to pay a portion of their monthly living expense. To reverse this trend, each individual must take positive action to eliminate debt obligations and begin consistently building net worth. For most people, if nothing changes, retirement relying upon remnants of the social security system virtually assures future poverty.
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