Right after Thanksgiving, I told you my feelings about the culture’s push to encourage more-and-more Americans to get into debt. With reports of a possible “W” recession (by the same folks that told you to spend money) and little job security, you would think American’s would learn their lesson.
However, many did not. The Piper must be paid eventually.
Creditcards.com reported that personal bankruptcies rose eight percent in 2010. But the telling statement may have been the following:
“We have a situation that is nowhere near resolved right now,” given the continued sky-high unemployment rate and the millions who owe far more on their homes than their properties are worth, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies. On top of that, Jones worries about the reports of a robust 2010 holiday shopping season. “That’s going to hit home this month and next,” Jones says, fearing it will fuel bankruptcy filings in the first half of 2011.”
Looks like 2011 may not deliver the recovery many desire to see in their households because of too much “fun” in 2010.