With the New Year here, it’s time to break the old bad habits and start afresh. With Europe on the verge of economic collapse and the US not far behind, Americans need to take heed from the warning signs. It’s only common sense to . Back in 2011, we saw volatile swings in the commodities markets and stock markets. Volatility usually means insecurity and lack of stability in the markets. As the markets continue to swing people don’t know where to invest their money. Today I watched the news and the Fed reported that unemployment is down to 8.6% and the job market is getting stronger. After doing some research, the actual number of unemployment nationwide is closer to 11.4% and not dropping as promised. It seems that the Commerce Department just keeps changing the way they report it to make things not look so bad. At year end, the number for those filing bankruptcy was flat when compared to 2010. While that sounds pretty good, people are quick to forget that the number of Americans filing for bankruptcy has steadily increased since the changes to the bankruptcy code back in 2005.
It’s time for Americans to get back to the roots of being debt-free. It was recently reported that the average American has $16,000 in credit card debt. As the average income nationwide continues to decline this number becomes more and more scary. Most people don’t even realize that this debt they have will never be paid off. The can will just be kicked down the road as long as they can continue making the minimum payments. These individuals need to realize the only way that they will have a chance at becoming debt-free is filing for bankruptcy. Filing Chapter 7 bankruptcy is almost tailor-made for the average American that carries the average amount of credit card debt. The beauty of the whole thing is, many of these folks can become debt free shortly after their bankruptcy discharge. If the majority of their debt is credit card debt, all of that will be wiped out in the bankruptcy discharge. An easy test for someone in debt is to figure out how long it would take to pay off their credit cards if they stopped using them today. If they answered longer than five years, they should consider consulting a bankruptcy attorney to see if filing bankruptcy will work for them. There is no magic bullet that will make someone debt-free, but there are some shortcuts if it is done properly.