It’s being said that the economy is beginning to show signs of life. Consumers are starting to spend again, even if it’s not in the same way as they were before the recession. It is still up for debate whether consumers in New Jersey would agree, considering the fact that some people are still facing the possibility of bankruptcy.
The recession seems to have left a permanent mark on consumers. People seem to be paying down their debts and saving money in contrast to how they were spending their money before the recession. In the days and years prior to the recession, many individuals were able to borrow money much more easily, and they did.
Things appear to be different now as the economy makes a steady, albeit slow recovery. Homes prices are going back up, and the stock market is as well. Banks are no longer lending money in the same way they were previously. When it comes to home ownership, most banks are now requiring larger down payments, making it more difficult for consumers to acquire new debt.
All of this may be good news, but it doesn’t mean that we are out of the woods yet. There are still many people in New Jersey and around the country that are struggling with debt that has eclipsed their income. For those people, filing for bankruptcy protection may be the answer. Filing bankruptcy may give struggling consumers the opportunity to share in the economic recovery. Having a fresh start could make that happen.
Source: MailTribune.com, “Consumers coming back, but not with credit cards,” Kevin G. Hall, Feb. 16, 2013