Bankruptcy Filings Rise, even as Average Household Consumer Debt DipsSubmitted by bobbyw24 on Tue, 03/29/2011 - 06:56
Although bankruptcy filings continue to rise, the report showed that the long-term upward trend in consumer indebtedness was interrupted by the recession. The amount of debt held by US households has steadily declined for 10 consecutive quarters, since mid-2008. Households have reduced their debt burden by about $707 billion or 5.4%. Of that debt burden, 97percent is composed of mortgage debt and consumer credit. The report indicates that the burden of debt has risen over the past 20 years, but the gradual increase does not explain the 500 percent increase in personal bankruptcy filings over that period of time.