There are several different factors that experts look at when estimating future bankruptcy trends. Two of these are the unemployment rate and household debt to income ratio. Both of these indicators do not look great in terms of consumer bankruptcy trends that could be on the horizon.
Like men and women all across the United States, many workers in Georgia are struggling to either find or maintain employment. Losing a job is a financially traumatic event, especially if someone was the main or sole earner for his or her household. It does not take long to fall behind on bills, including for things like rent or mortgage that help secure housing. When faced with these hurdles, bankruptcy is often one of the most reasonable options for addressing the downfall of unemployment.
Bankruptcy is not just for the unemployed, though. Households that have fairly high ratios for debt to income are also in a precarious situation. As was last seen in 2007, aggregate household debt to income rate hit a high of 1.24 — 24% more debt than one’s income — right before the Great Recession. This helped trigger a series of bankruptcies across the country, and experts worry that history could repeat itself soon.
Georgia consumers are not necessarily making a rush to file for bankruptcy just yet, but that does not mean it is time to relax. A series of economic and financial struggles seem to be laying the groundwork for a possible consumer bankruptcy trend. When faced with these or similar financial constraints, it can be helpful to first speak with an experienced party before making any firm decisions for moving forward.