Consumers have been working hard at slicing away at their debt and the results showed up in the nation?s bankruptcy filings in 2012.
Consumer bankruptcies plummeted 14 percent from 2011, according to the American Bankruptcy Institute and Epiq Systems Inc.
?The 2012 filings represent the lowest total since the financial crisis in 2008,? said ABI Executive Director Samuel J. Gerdano. ?With low interest rates, reduced consumer spending and continued deleveraging by households, bankruptcy filings will likely continue their decline in 2013.?
Also, late payments on bank credit cards in the third quarter fell to the lowest level since 1994, according to the American Bankers Association.
But can consumers keep up their discipline, given that their paychecks will be smaller because of the expiration of the temporary cut of the Social Security payroll tax?
?Many consumers will see their real disposable income take a significant hit in the New Year,? said James Chessen, chief economist of the American Bankers Association. ?Changes in payroll withholding will decrease disposable income, reducing retail sales and making it more difficult for some people to meet their financial obligations.?
Source: http://bizbeatblog.dallasnews.com/2013/01/consumer-bankruptcies-fall-in-2012.html/
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