End Of The Credit Crunch?

Facing the distribution of those much needed rebate checks, US Treasury Secretary Henry Paulson is optimistic that the end of the credit crunch is near. Paulson admits that the high price of gasoline will prove problematic when it comes to reviving the struggling economy he does sound hopeful that the economy will receive the boost that the stimulus package was intended for. [Read more]

Bankruptcies Increase By 38% Last Year

The U.S Courts Administrative Office has announced that, during 2007, the number of bankruptcies filed by both businesses and consumers in the US have went up by 38% to a grand total of 850,912, making for some of the highest numbers in recent years.

Furthermore, a collection of legal gurus have stated that they believe an even higher percentage of bankruptcies should be expected for 2008 on account of the subprime mortgage crisis that is leaving homeowners no choice but to accept foreclosure. [Read more]

Businesses Face Bankruptcy

Many economists are claiming that the credit crunch is slowing and the housing market improving but the number of bankruptcies is not reflecting these claims. Bankruptcies can be filed by individual or businesses as a way to protect them against any further debt, repossession, and foreclosure. While not preferable for many individuals, businesses are known to file for bankruptcy in an effort to restructure and reorganize.

Filing for Chapter 11 bankruptcy is a way of staying in business while reorganizing its debt obligations. The business will then pay the creditors back over a determined period of time. Even though the company is still in business share holders are still negatively impacted.

Business bankruptcies are just another symptom of the credit crunch caused by the mortgage crisis. Often times the businesses that file of bankruptcy in times of financial difficulties are the ones depending upon the disposal income of its consumers. Tropicana Entertainment has joined a number of companies who have filed for Chapter 11 bankruptcy in the past few months since their customers do not have the cash to spend at the casinos which Tropicana Entertainment owns.

Small businesses were the first to file bankruptcy caused by the current economic crisis followed by the larger institutions. While it is possible to recover from a Chapter 11 bankruptcy many of the mom and pop establishments have to shut down due to the action. With the introduction of the stimulus package checks many financial experts are expecting a surge in consumer buying which may save many businesses facing the possibility of bankruptcy.

Others are more skeptical, however, citing high gas and food prices where they believe many of the checks will go towards.

The fact is that the number of bankruptcies have risen 37% for both businesses and individuals as the economy continues to falter. Bankruptcies for businesses and other commercial ventures rose 56% from a year earlier illustrating the continuing problem.

Recent additions:

• Is Debt Settlement A Solution for You?
• Using Bankruptcy As A Debt Solver - Is It The Right Move?
• What’s The Better Choice To Deal With Debt: Consolidation Or Negotiation
• How You Can Negotiate Lower Debt Payments
• How Much Debt Do You Really Have?

What’s The Better Choice To Deal With Debt: Consolidation Or Negotiation

Many people are asking themselves, “How can I get rid of my debt?” For some, it is a cry of desperation because they are drowning in credit card debt. There is no way to pay down the interest so you can start cutting into the principal. You will be stuck paying on your credit cards for the foreseeable future. What do you do? [Read more]

Using Bankruptcy As A Debt Solver - Is It The Right Move?

Often, it seems like your bad debt situation continues to get worse no matter what you try. You may feel like you’ve run out of options and that declaring bankruptcy is the only choice that you can make. If you feel this way, you need to wait and really think about what the consequences will be. Filing bankruptcy can produce some costly effects, both on your credit and your ability to obtain financial assistance later on. [Read more]

Don’t let the lure of credit cards put you in debt

Americans who have debt problems did not deliberately set out to have the situation fall upon them. Many people just do not realise along the way, how their financial situation is deteriorating around them.

The US economy runs on cheap and available credit, which we all take advantage of. But, when things start to turn a little ugly in the financial world, as they are now. We can all end up with a debt crisis that can be difficult, if not nearly impossible, to resolve without serious expert help. [Read more]

Tidy up your finances with consolidation

Anyone that has to deal with a wide range of debts with a range of different lenders will know how messy financial management can be. It can be really difficult as well as frustrating to have to juggle different loans and deal with a variety of creditors, and because of this dealing with your finances can become a time consuming and stressful job.

These days many of us find ourselves having to juggle a range of financial commitments due to high debt levels, but there is a way in which you could reduce the number of debts and creditors that you have to deal with, thus reducing the amount of time that you spend on managing your finances. You could even save yourself some money on your outgoings each month. [Read more]

Financial Experts Recommend Boosting Savings

Financial experts say that you should pad your checking and savings accounts so that you have not only enough money to pay your regular bills, but also to pay insurance deductibles and emergency costs.

In 2-income families, it’s a good idea to sock away enough so that you could make ends meet should one of the wage earners become unemployed or physically unable to work. [Read more]

Consider a Debt Reduction Program

If you have been doing some research into the options available to you to that could help to resolve your debt and credit problems, you may have run across the term “debt reduction program” and wondered if this was the solution for you. Just what is a debt reduction program? [Read more]

Late Credit Card Payments on the Rise

It appears that more American consumers are late in paying their credit card bills. The organization known as CardTrak reports that the percentage of customers who are tardy in making credit card payments is at a 3-year high.

The trend is actually a money-maker for credit card companies. That’s because credit card issuers earned $18.1 billion in penalty fees in 2007, up from $17 billion in 2006. [Read more]

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