Over the last few years, or beginning in 2008 to be exact, a record number of Americans have been filing bankruptcy to protect themselves from their creditors. What’s interesting is the Federal Reserve is continuing to print more money and give it to their member banks. It was disbursed under quantitative easing. First we had QE1 and when it stopped the Fed noticed the economy started quickly going back into the tank, so they added QE2, QE3 and now the QE4 which really should be called QE infinity.
Currently, the Fed is printing $85 billion a month with no end in sight. What they are doing with this money is buying up mortgage backed securities and trying to prop up the failing banks. Americans are starting to notice that this quantitative easing is only helping the financial institutions and not helping the economy in one bit. More and more Americans are considering the idea of filing for bankruptcy to eliminate their debt as unemployment numbers continue to sit around 7%. It appears that something funny is gone on because the employment to population number is going down also. In reality, if more people are working in the population that number should rise not go down. Many people believe these numbers are not even real as it seems much worse than the picture our government is portraying.
While the economy continues to dwindle, people need to be proactive when it comes to financial matters even if it means filing Chapter 7 bankruptcy to eliminate their credit card debt. Currently, the average American has $15,270 in credit card debt and close to $1 trillion nationwide. With less people working, it seems this is a cocktail for disaster. People in financial trouble need to be alert to make sure before creditors start suing them, that person should be seeking the advice of a bankruptcy attorney to see if filing bankruptcy might help their situation. In the least they should consider the option of debt settlement to get the creditors off their back. Waiting until the last minute is foolish. The American culture as a whole is very honest and does not like the idea of walking from their debts.
Sometimes there is no way around it and creditors need to take some of the responsibility for allowing people to get so far in debt that they can’t afford to make the payments. Prior to 2007, I believe that creditors knew that people could not afford the homes they were loaning them money on. They were setting these people up for failure knowing they would lose their homes to foreclosure. Looking back, it doesn’t take a rocket scientist to figure all of this out. Many experts are worrying that if the Fed stops quantitative easing we will see hyperinflation in our economy. For those that are struggling this would put the final nail in their coffins. Gas, food and rent prices will go through the roof making it impossible for someone to make ends meet. Americans need to get their head out of the sand and start looking around to what really is going on.