Consumers owed $11.83 trillion as of the end of 2014, according to the Household Debt and Credit Report produced by the Federal Reserve Bank of New York. Total debt increased by $306 billion during 2014, according to the report which is based on data from the New York Fed’s Consumer Credit Panel. This could potentially lead to more people filing bankruptcy.
According to the report, consumers ended 2014 owning $8.17 trillion on residential mortgages, $1.16 trillion in student loans, $955 billion on auto loans, $700 billion on credit cards and $510 billion on home equity lines of credit.
The report also notes an increase in the delinquency rate for auto and student loans. Consumer debt and delinquency rates are still on the rise in an economy that has not recovered from the 2008 meltdown, according to bankruptcy attorney Jon M. Gold of RGG Law. At this point in time, filing bankruptcy will not relieve debtors of student loan debt, however, filing bankruptcy can relieve the pressure of consumer debt.
Filing Bankruptcy with RGG Law
RGG Law bankruptcy lawyers can guide you through the process of filing bankruptcy. Contact us today for a consultation if you believe bankruptcy could help your situation.