Illinois bankruptcy: consumer debt down to pre-recession levels

Illinois residents may be interested to know that people are paying less on loans, mortgages, and credit card debt. For those who are still struggling and seeking bankruptcy protection, it may not seem that way. However, debt levels are said to be at the lowest they have been since the start of the recession. Whether this means that Americans are ready to spend money on luxury items again remains to be seen as there are still many individuals and families struggling to make ends meet.

For many, pinching pennies and reducing expenses has become a way of life. More Americans are living within their means than in years past. This makes some economists hopeful that spending will increase, especially with the holiday season fast approaching. There was a slight increase in spending in recent months, but most of that increase may be accounted for by auto purchases and the release of the iPhone 5 by Apple.

In addition, rising food and gas prices may keep people from spending on what may be considered non-essential items. Costs are rising, but paychecks are not, and that doesn't bode well for spending more money. In addition, many may be concerned about possibly paying more taxes beginning next year.

Amidst all of this, the more recent optimistic news may be difficult for some Illinois families to recognize if they are stilling struggling to keep their home and pay their bills. For those who are fighting to keep ahead of debt they are no longer able to pay, bankruptcy may be a viable option. Filing for bankruptcy protection may help a filer be able to take a breath and tackle financial problems once and for all. There is no shame in seeking relief from financial obligations that have become too much to endure in a difficult economy, and the right advice may lay the foundation for a return to economic prosperity.

Source: The Huffington Post, "Household Debt At Lowest Level Since 2006, Consumers More Comfortable Spending Again," Catherine New, Oct. 15, 2012

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