In 2008 alone, reports CNN Money, personal bankruptcies are approaching the one million mark, up more than 28 percent over last year. As you might guess, even the law passed in 2005, making it more difficult to file for bankruptcy, has not done much in recent months to stymie bankruptcy filings. Mainly because the debt people have now can basically not be paid off. With HELOCs being frozen, limiting access to home equity, and with job loss and inflation causing strain on household budgets, it is no surprise that people are cracking under the strain.
Indeed, personal bankruptcies are expected to …read more

We’ve been so focused on the mortgage part of the current credit and economic crisis, that we have been neglecting a very large segment of debt lately: credit cards.
Right now, there are reports that the credit card default rate is set to spike. This is because as individuals find it harder to make ends meet in this economic slowdown, there is evidence that some things — like unsecured debt — are starting to move down on the priority list. Things like food are coming before credit card payments, and that means that credit card companies are going to start toting …read more