Americans looking to borrow in 2023 could face more difficulty than in previous years, Yahoo Finance reports. Approval for almost all forms of borrowing, from car payment loans to credit cards, can be a battle in the current economic environment.
The New York Federal Reserve recently published a study that shows that rejection for credit card applications has risen to 21.8% in June 2023. This is the highest rejection rate in five years, and this has been shown to have an effect on every demographic, but especially people with credit scores below 680. In addition to high rejection rates, the Federal Reserve System has been hiking interest rates to hopefully combat the ongoing inflation in the U.S. These high interest rates are intended to deter people from borrowing money through loans, credit cards and more.
This year has undoubtedly been tough for Americans. High interest rates paired with stricter acceptance for borrowing can leave people in tight financial situations. If you are struggling to meet payments for debt obligations, opening a new line of credit or taking out another loan is likely not the best option. Borrowing more often provides some initial relief but only to leave you with even more accumulated interest, resulting in additional debt and higher payments in the process.
If you are in a financial situation where you are struggling to stay afloat, step away from the credit application and consider filing for bankruptcy. Consumer bankruptcy can often alleviate stress and provide solutions to avoid foreclosure, car repossession and creditor harassment while putting you in position to achieve financial stability down the road.
Making the first call to obtain information about filing for bankruptcy is the most difficult step, but our attorneys are here to provide a better understanding of your situation and options. At Sader Law Firm, we are here to help you in your journey to financial recovery.
If you have questions about your financial situation or are considering filing for bankruptcy, contact Sader Law Firm at (816) 561-1818 for a free phone consultation.