US Consumer Debt Continues to Rise Causing Many to File Bankruptcy

US Consumer Debt Continues to Rise Causing Many to File Bankruptcy "Recently, you cannot turn on the television without hearing about the fiscal precipice the government is about to fall off. Depending on who you ask, it appears that the catastrophe will occur if Congress does not agree to additional debt to continue operating the Federal Government. Few members of Congress even mention the expenditure problem, as opposed to the debt problem. Currently, the United States government owes $16.7 trillion, and at the current rate of spending, this amount will surpass $22 trillion by 2016, when the current president exits office. Currently, the budget deficit exceeds $1,090,000,00. This is the government's spending in excess of its revenue. If any of us ran our households in this manner, we would be forced to declare bankruptcy every year. The US government does not have a debt problem, but rather an expenditure problem, and will never be able to get the debt under control until entitlements and government size are reduced.Not only has the government gotten itself into trouble by overspending, but it also appears that the American people are once again on a spending frenzy. Many experts have questioned why the number of Americans filing for bankruptcy has decreased over the past two years to approximately 1.3 million, when they had anticipated an increase. The media appears to believe that the financial recovery has begun and that the 2007 financial crisis is now in the distant past. In reality, individuals are not returning to work, or at least not to high-paying positions. The only jobs that have been created are minimum wage positions. My belief is that fewer individuals are filing for bankruptcy because banks are once again lending money irresponsibly. True, it is more difficult to obtain a mortgage loan, but credit cards are readily available. Once again, Americans are attempting to be optimistic about the economy and borrowing money that they will have difficulty repaying. The Federal Reserve reported last week that consumer borrowing increased by $14,2 billion from September to October 2012. This increased consumer debt to $2.75 trillion in total.It is evident that many people will have to file for bankruptcy in 2013 and beyond, given all this terrible news. Many Americans are scarcely surviving and spending all of their savings to continue delaying the inevitable. It would be preferable if they considered the option of declaring insolvency and eliminating all of this debt. In the past, the stigma associated with bankruptcy caused many individuals to avoid it. However, in recent years, many individuals have been forced to file for bankruptcy. Even if the individual decides not to file for bankruptcy, there is nothing improper about seeking the counsel of a bankruptcy attorney. Typically, a bankruptcy attorney will educate a client and allow them to decide whether or not to apply for bankruptcy. During these difficult economic circumstances, it is crucial to be proactive.
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