If you are part of the millennial generation, you may have seen how the Great Recession affected your family and friends. Therefore, you may now be basing some of your financial decisions on avoiding the negative consequences that you observed and the high rates of bankruptcy that resulted. If you are avoiding using credit cards as part of that, you are not alone. According to Money Magazine, 35 percent of people over the age of 30 do not use credit cards. However, for adults aged 18 to 29, the number is 63 percent.
The 2016 Summer Olympics are in full swing in Rio and there have been a number of standout American athletes that have become household names across Tennessee. However, earning a medal does not guarantee a lifetime of fame and fortune. While a handful of competitors may go on to play sports professionally or earn money from lucrative endorsement deals, for many competitors and the families whose support helped them achieve their goals, competing in the Olympics is the end of the road.
Nearly everyone in Tennessee is familiar with the housing bubble that ultimately burst and caused the Great Recession. Now a new bubble is on the horizon. This one involves auto loans and while it will probably not devastate the economy in the same way, it could lead to trouble for both borrowers and car dealers.
After the housing bubble burst in the mid-2000’s, regulations were put in place that allowed mortgage borrowers to take advantage of certain protections against foreclosure one time only over the lifespan of a loan. New rules have now been approved by the Consumer Financial Protection Bureau which would expand those protections and further protect homeowners from wrongful foreclosures, according to NBC News.
Don't feel bad. Bankruptcy happens everywhere, not just here.
Here's the bad news: Tennessee has the worst bankruptcy record in the U.S., according to a report produced by finance website NerdWallet.
There may be several different reasons why you would consider co-signing a student loan for someone. Most often, co-signers are parents who co-sign their child’s loan but you may also just want to help support a friend or relative who is pursuing a higher education. If you choose to do so, you should be careful as there are risks that come with being a student loan co-signer. Since the people taking out student loans are often young adults with little or no credit history and no source of income, having a co-signer can help them obtain a better loan than they would qualify for on their own. As a co-signer, however, you are then equally responsible for paying back the debt, according to Money Crashers.
After the Great Recession sent the economy into a tailspin, many consumers in Tennessee and across the country became much more cautious about using credit cards and taking on high-interest debt. However, it seems that the recent stronger economy now has many people heading in the opposite direction. According to NBC News, the number of new credit card accounts being opened is on the rise and is approaching the same numbers as before the Great Recession hit.
If you are buried under unmanageable debt and seeking a way out, bankruptcy may very well be one of the options you have taken into consideration. However, if you don't know very much about bankruptcy, which is not unusual for people going through it for the first time, you could find yourself believing some myths and half-truths about the process.