You can’t buy groceries with your house anymore

Nationwide, credit card debt has fallen to the lowest level in the past eight years, according to an AP article by Eileen Connolly.

The highest levels of credit card debt are in Alaska, and people in Alabama have been paying off their cards the most. Massachusetts and new Hampshire are about in the middle as far as credit card debt goes. Less than 1% of accounts are now more than three months behind, for the first time since this recession started.

Consumers still have worries, though, from the fear of unemployment to the fact that the collapsed housing market means it’s harder to cash in on home equity when money gets tight. “You can’t buy groceries with your house anymore,’’ Ezra Becker of the Trans Union credit reporting agency said.

In a twist, Becker said the foreclosure crisis could be helping to improve the timeliness of credit card payments and lower balances. When people don’t make mortgage payments, he suggested, they have a short-term cash boost.

“That can provide extra money to pay down credit cards,’’ he said.

If you are struggling with your credit cards, a chapter 7 bankruptcy case can provide immediate relief, and a chance to start over again from scratch. You can call me at (978) 975 – 2608 for free information on filing a Chapter 7 case in either Massachusetts or New Hampshire

 

By Doug Beaton

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