Last week's post discussed how people in the Detroit metro area are incurring less debt on mortgages and home equity lines but are more willing either to take out a loan on a car or to incur credit card debt in order to front living expenses. While some see this as a sign of economic recover, it can also be a sign that financial trouble is brewing down the road, when the next economic downturn hits.
While consumer debt like credit cards and car loans can help a family afford what it needs right away, the downside of these types of debt is that they rarely give a family the opportunity to escape a financial crisis by building up equity. In a financial pinch, sometimes a family can escape an oppressive mortgage paying by selling the home and downsizing. On the other hand, a family will rarely be able to sell a car for the value of what they paid for it and will almost never be able to sell off good purchased on a credit card.
This fact could leave a family that, for good reasons, needed to take out a car loan or use their credit card feeling a little stuck when tough financial times hit. Fortunately, Michigan residents can find help through the services of a skilled bankruptcy attorney like those who work at The Smith Law Offices, P.C.
Our law office cannot promise that a person will get everything he or she wants out of a bankruptcy for nothing other than a modest fee. However, we can promise to work on your case diligently and to give you a good overview of all of your options should you be facing mounting consumer debt and a slowing income stream. If you are having financial trouble and need help, please feel free to visit our Chapter 7 Bankruptcy page for more information.