The nation’s financial crisis is reaching its peak as the year comes to a close, and the forecast for the next two years looks just as glum.
During the month of October, U.S. consumer bankruptcy filing increased by 40 percent. According to a report issued on Tuesday by the American Bankruptcy Institute, 106,266 consumers have filed for bankruptcy. This is an increase of 40 percent, compared to figures from a year ago, and 20 percent from this September’s report.
These numbers not only tell the story of an economically deprived nation, but also of consumers that have failed to show prudence and discipline. Bankruptcy is a system that forgives the debt of consumers who are unable to pay what they owe. In previous years it was reserved for things like calamities, lethal illnesses and business failure, but now many Americans are behind mortgage, car, and credit card payments.
While some cases are rooted in unemployment, a lion’s share of the troubles can be traced back to predatory lending practices of banks and the inability of Americans to recognize such unscrupulous practices.
Now is a time when the consumers should turn away from financial irresponsibility, and live within their means.
We Americans must adopt new spending habits. The economy will eventually stabilize itself, but public purchase patterns must change to bring faster economic equilibrium.
Akeem Anderson from the editorial board.