Those who study consumer debt had been expressing optimism in recent years over young adults' seeming aversion to taking on credit card debt and consumer loan products. Millennials and those in the group following them (Generation Z) were doing better than their parents' generation at staying out of debt.
Most of us take good health for granted -- until a serious injury or illness strikes us or a family member. The resulting medical bills, possibly coupled with lost or reduced income, can devastate a family financially.
When people are deep in debt, trying to juggle payments to a multitude of credit card companies and lenders each month in addition to paying their basic living expenses, the idea of a "consolidation loan" can be very attractive. Why not take out yet one more loan offered at a low-interest rate and use it to pay off all of your other bills?
The first quarter of this year brought some troubling news regarding consumer credit. The credit card industry saw an increase in the charge-off rate. That reflects the percentage of debt that companies don't expect to collect. While that rate (3.82%) is low by historical standards, it's still the highest in seven years, according to Bloomberg Intelligence.
Far too many New York residents have found themselves struggling financially in the last few years. If you are one of them, you have likely been looking for debt relief options that will improve your situation without having to file for bankruptcy. In your search, you have probably found more than a few companies offering to rid you of debt in a way that seems too good to be true. Well, if it seems too good to be true, that is a sign that you may want to pass.