SOURCE: Golden State Law Group

Golden State Law Group San Diego Bankruptcy Lawyers

August 15, 2013 14:49 ET

San Diego Bankruptcy Attorneys at the Golden State Law Group Respond to Positive Debt Report

The San Diego Bankruptcy Lawyers at the Golden State Law Group, URL, Respond to a Positive Debt Report Filed by UPI

SAN DIEGO, CA--(Marketwired - August 15, 2013) - The San Diego bankruptcy lawyers at the Golden State Law Group have been helping clients who have encountered serious financial difficulties for several years. The firm represents consumers and businesses that need to reorganize or to eliminate unmanageable amounts of debt, and the attorneys at the firm also help deal with tax debt, criminal defense issues and personal injury matters. The bankruptcy attorneys at the firm would like to respond to a recent report that was run by the UPI that involved an analysis of the amount of debt owed by Americans.

The UPI report, which can be found here, stated that data released by the New York Federal Reserve Bank revealed a trend of American consumers relying less on credit during the second quarter of 2013 as compared to previous quarters. The Household Debt and Credit Report stated that consumer debt dropped by $78 billion overall during the second quarter of 2013 and that total indebtedness dropped by a factor of 0.7 percent to $11.15 trillion. This level was well below the high point of $12.68 trillion, which was reached in 2008.

While the report stated that consumer debt was now at the lowest point overall since 2006, many of those drops were related to mortgage debt and home equity debt, which fell by $91 billion and $12 billion in the second quarter respectively. Finally, bankruptcy filings that were added to the credit reports of consumers fell by a factor of 4.8 percent when compared to the second quarter of 2012. This marks the 10th consecutive quarter in which bankruptcy filings fell when compared to the previous year.

However, there were some negative notations in the UPI article. Debt that was not related to housing rose during the second quarter by a factor of 0.9 percent with car loans rising by a factor of $20 billion. Student loan debt and credit card debt also increased by factors of $8 billion in the second quarter as compared to the previous quarter. 

"While the drop in overall indebtedness is a positive, the facts that student loan debt and credit card debt both continued to rise could signal problems for many consumers in the future," said David Weil of the Golden State Law Group. "We have seen too many situations where credit card debt, student loan debt or both have become unmanageable for consumers and we would suggest that those borrowing in this manner do so with extreme caution," Weil added. 

About the Golden State Law Group

The Golden State Law Group is a law firm in San Diego, California that's comprised of a team of San Diego bankruptcy attorneys who provide legal help to consumers and businesses. Specifically, the attorneys at the firm provide help to consumers in the legal areas of student loan debt problems, medical bill issues, consumer bankruptcy, business bankruptcy, tax debt issues and personal injury cases. 

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