Wednesday, October 7th, 2015

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Bankruptcy Reaching New Highs, Highlighting Importance of Financial Responsibility

Some consumers have faced difficulties with personal finance, leading them to declare bankruptcy.The idea of having financial difficulties may be a foreign notion for some younger consumers, especially those who have just graduated from college and have their whole lives ahead of them.

However, the recession found many people – both young and old – having difficulties with trying to get out of debt, so much so that some of them had to resort to bankruptcy. In 2009, more than 1.4 million people filed for bankruptcy, the most seen since new rules regulating the practice were adopted by the government in 2005.

Recently, the National Bankruptcy Research Center reported that approximately 145,000 bankruptcies were filed in May, a slight decrease from the 137,000 seen in April. However, the organization noted that filings during the first five months of this year are still 15 percent higher than during the same time in 2009.

Given these statistics, younger people just starting their careers may want to keep close tabs on their personal finance habits. Along with avoiding excessive use of their credit cards, experts note that setting up a budget will help ensure that consumers don’t spend beyond their incomes.ADNFCR-3389-ID-19838492-ADNFCR

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One Response to Bankruptcy Reaching New Highs, Highlighting Importance of Financial Responsibility

  1. KM says:

    This should teach our society a lesson about the importance of having a credit history. If someone like me, who is young and with absolutely no debt and never having had a credit card, is seen as high risk and will not be given a loan for a house sometime down the road, then it’s the wrong message the credit card obsessed society is sending the younger generation. We are basically being told that we need credit cards in order to establish our credit history, without any regard to the fact that some people can’t handle the responsibility of only using what you can pay back quickly, which ends with way too many young people collecting huge amounts of debt before they even have a stable job. What the message should be is “wait until you are older and have a good, stable job before you go into debt and only do that for valid reasons, such as a car or house loan instead of using a plastic for every purchase.” And yet there are still articles like this being written, when it’s already too late.

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