As Americans continue to get bad economic news, many people are wondering if filing bankruptcy will be in their future. This year in 2012 many politicians will start slinging mud and playing the blame game of who’s responsible for this terrible economy. In the last three years, gas prices have virtually doubled and debt ratios of Americans are continuing to climb. The average American has $16,000 in credit card debt as of the end of 2011. Every year this number continues to creep up making it obvious that many Americans will be filing bankruptcy in the near future. What happened to the good old days when Americans had savings accounts and prided themselves on being debt-free. In today’s, buy now and pay for it later society, the days of being debt-free are becoming just a memory. It is true that it is next to impossible to not have any debt. With the average home price in the US being about $220,000 currently, having some kind of debt is not necessarily bad. A home mortgage allows the debtor to write off the interest on their taxes giving them a substantial savings on their income tax. Depending on one’s situation, this can be beneficial for many families.
Having a home loan is not necessarily bad as you do need a place to live and if you don’t have a payment you will have to be paying rent. Back in the 60s, people used to save for that once-in-a-lifetime vacation or even that brand-new car. Now, Americans buy new cars every six years and many of them even indulge every couple years. This is all because of the credit markets and people see it as only a monthly payment. In the old days, people had much simpler lifestyles and saved for retirement. Ever since the credit card industry there has been a steady increase of people becoming more in to their debt bondage. Gone are the days of being debt-free but it doesn’t mean they can’t come back.
Sure it makes sense to have a home loan, but credit card debt can be debilitating. For many Americans the only way outside of winning the lottery will they ever be able to pay their credit card debt off in a lifetime. For these folks, the quickest and best way to eliminate crippling credit card debt is filing bankruptcy. Filing Chapter 7 bankruptcy will wipe out all unsecured debt. Unsecured debt is debt like credit cards, personal loans, medical bills, payday loans and even some back taxes. If someone is having trouble making ends meet, they should add up all their credit card debt and if they stop charging today figure out how long would it take to pay it off. If it takes longer than five years they should consider filing Chapter 7 bankruptcy. Remember to . The ability to become debt-free is being put right on the tips of your fingers and one shouldn’t let this opportunity pass. Everyone’s situation is different but many people exit a bankruptcy filing being debt-free or close to it. Filing bankruptcy is best served with the help of a bankruptcy attorney. A bankruptcy attorney will know how to get the maximum benefits from the bankruptcy process. Get back to the values of the past and live like our grandparents.