With certain student loan payment requirements set to resume after a nearly four-year pause, the Federal Reserve Bank of New York found this may not result in a significant impact on the economy. However, borrowers have taken on more debt burdens since the COVID-19 pandemic. Despite the relief the government provided during Covid, all this debt combined results in challenges that there may now be additional payments unaccounted for within an individual’s current budget. While most student loan debt is not dischargeable, bankruptcy may provide relief for other debts and eliminate the need to take on more credit card debt or personal loans. This is especially true for those facing any of the circumstances outlined in this recent Yahoo! article that detailed the Fed’s study and other reports related to the economic impact when payments resume for thousands of individuals. The Fed’s study found borrowers would reduce their spending by…
Read More »
As the Federal Reserve continues to raise interest rates and with no reprieve in sight, Americans are beginning to feel the pressure. Consumers looking for home and auto loans are finding that their money gets them a lot less now than it did a few years ago. Simultaneously, consumers with credit card and other debt are also experiencing the impact of these higher rates. A recent report from the Wall Street Journal showed the significant increase in mortgage rates, which have jumped from about 3% just two years ago to a current rate of around 7%. This increase means that homebuyers could potentially pay hundreds of thousands of dollars more over the life of their loan compared to loans obtained just two years ago. Because of these higher rates, the National Association of Realtors calculates that the typical American family can no longer afford to buy a median-priced home. Mark…
Read More »
For the first time in several years, auto loans have passed student loans, becoming the second largest debt burden for U.S. consumers. Based on data from the Federal Reserve Bank of New York, auto loan debt has reached $1.582 trillion, compared to $1.569 trillion in student loan debt, WSJ Pro Bankruptcy reported. During the financial crisis of 2008, many individuals, some of whom had lost their jobs, decided to go back to school for new education and training. This resulted in higher levels of student borrowing. However, during the pandemic, millions of Americans were able to set aside thoughts and stress about student loans, as the U.S. government paused payments and interest on federal student loans. Nonetheless, this did not mean that consumers stopped purchasing vehicles during this time. Consumers in the U.S. continued to buy cars that were often sold at inflated prices. New and used vehicle inflation reached…
Read More »
*Credit card payments will not be accepted for bankruptcy cases, unless pre-approved by The Sader Law Firm. If you have a question about a credit card payment, please call our Office Manager at (816) 561 1818.
© 2010–2023 The Sader Law Firm
Book an
Email
Directions
