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August 2018 Archives

Finding A Balance Between Income And Debt

Many young adults who live in the Baton Rouge area and other cities across the United States area are already in debt with a large percentage not being of the legal age to drink. This age group is known as Generation Z or those who are between the ages of 16 and 20. The average debt of these young adults is about $4,300. Young adults who are between 21 and 25 are in debt by about $11,000 each with the amount being higher if they don't have as much financial aid as others while attending college or if they attend a university that is a bit more expensive than others.

Rising consumer debt worries financial experts

The amount of money owed by households in Louisiana and around the country to banks and credit card companies fell sharply in the wake of the 2008 financial crisis and remained fairly stable during the ensuing recession, but figures from the U.S. Federal Reserve reveal that it has now surpassed its pre-crisis levels. Household debt in the United States climbed to an all-time high of $13.2 trillion by the end of March 2018 according to the nation's central bank, and most financial experts expect this figure to rise even higher in the months and years ahead.

Many more seniors filing for bankruptcy

While many older people are planning for retirement, others in Louisiana and around the country are considering bankruptcy. Financial hardship has impacted many older Americans, and the number of older people declaring bankruptcy has increased markedly since 1991. This growth in bankruptcy far outweighs the overall aging of the American population, according to a study from the Consumer Bankruptcy Project. Indeed, the report found that around 800,000 petitions for personal bankruptcy are filed each year, and around 100,000 of them are filed by senior citizens.

The high cost of credit card minimum payments

Households around the country with revolving debt balances owe an average of $6,081 to credit card companies. Paying this debt off can be difficult for Louisiana consumers who are struggling to meet their financial obligations, and many credit card holders are only able to make their minimum monthly payments. Credit card minimum payments are usually $20 or $25 when revolving balances are low, but they climb to 2 to 3 percent of the outstanding amount when debt levels rise.

Stopping harassment by debt collectors

Debtors in Louisiana who suffer from harassment by debt collectors have legal recourse. While these companies are within their legal rights to contact consumers about delinquent accounts, any harassment that they conduct is illegal. Those that engage in harassment can be reported to the Federal Trade Commission and can be subject to punitive action.