According to USA Today, American consumers increased their auto and student loan borrowing by the largest amount in a year. Consumer borrowing climbed $16.5 billion in February, up from a $13.5 billion gain in Janurary, according to the Federal Reserve.
The overall increase in consumer debt pushed total borrowing to $3.13 trillion, which is a record.
According to the report, “Gains in borrowing are seen as an encouraging sign that people are more confident and willing to take on debt.”
As a Memphis bankruptcy attorney, I hope that confidence is not a blind one and that people are borrowing responsibly and within their ability to pay back on time.
I’ve practiced bankruptcy law in Memphis for over 30 years and I’ve seen many situations in which people get in over their heads borrowing money and all it takes is one unexpected incident like a costly medical emergency or a loss of a job to mess up their entire financial situation. This is a result of not being ready by borrowing too much and not saving enough.
If you’re behind on your bills, such as your car payments, and have fallen into debt, you don’t have to keep living enslaved to it. Here in America, we get a second chance to make our finances right through a bankruptcy. By filing for bankruptcy, you can either discharge your debt through a Chapter 7 or lump it all into an affordable 3-5 year repayment plan through a Chapter 13. A bankruptcy can also help you keep your car if you’re facing a repossession.
After you’ve completed the bankruptcy process, you have a fresh financial slate to re-establish and rebuild your credit the right way, and we have a great program called “7 Steps to a 720” that will help you with that. This program is free for our clients and will teach you:
how to rebuild your credit the right way
why most credit scores are wrong
which credit cards actually hurt your credit score
how to stop lenders that report the wrong information
how to re-establish your credit after a bankruptcy
Borrow responsibly and save wisely.
If you have any questions or if you’re considering filing for bankruptcy, please contact us today either by filling out the “Get in Touch” form below or by calling us at (901) 327-2100 and one of our experienced Memphis bankruptcy attorneys will be happy to discuss your situation with you, free of charge.