Category Archives: Consumer Credit

Filing for a bankruptcy can clear consumer credit such as credit cards and payday loans.

Retail Sales Saw Growth as Summer Comes to a Close

This past month, sales for retailers and restaurants grew at a rate much higher than anticipated by economists. Despite fears of an economic downturn, U.S. consumers finished the summer with spending habits that did not indicate any cutbacks. In September, sales grew by 0.4% from the previous month according to data from the Census Bureau. This is an increase from 0.1% growth in August. According to an article from the Wall Street Journal, this data alongside current unemployment filing rates depicts a cooling but still-robust economy as the U.S. heads into the presidential election. Even over the past 12 months, retail sales have climbed nearly 1.7%, not adjusted for inflation. While rising unemployment rates over the summer brought some fear the economy was approaching a downturn, the data as summer comes to a close shows that the labor market and signs of consumers’ financial health present a more resilient image…
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US Inflation at Lowest Rate in Three Years

Year-over-year inflation rates reached the lowest level seen in more than three years. This decline signals to consumers the potential that the post-Covid price spike is fading, and the Federal Reserve could be setting up to cut interest rates in September. In a report from the Labor Department, data shows that consumer prices measured year to year rose 2.9% in July, down from 3% in June. This marks the lowest gain since March 2021, according to an article from AP News. The report from the Labor Department stated that nearly all of the inflation seen in July was from higher rental prices and other increased housing costs. The Department also declared that this trend is easing as well. As inflation falls closer to the Federal Reserve’s target rate of 2%, economists are feeling more confident in the direction the rate is moving as well as with the pace at which…
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Borrowers Experiencing Added Financial Stress as Student Loan Payments Resume

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…
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