Consumer credit increases in September
In September 2017, consumer credit rose by $20.8 billion, which would be a rise of 6.6 percent annualized. Specifically, revolving credit rose $6.4 billion while other types of debts rose $14.4 billion. The growth in non-revolving credit was attributed in part to increased level of auto purchases after massive hurricanes hit Florida and Texas. In the third quarter, auto loans rose by $19.3 billion.
Before seasonal adjustment, lending by the government increased by $35.2 billion in the third quarter. The majority of this lending was in the form of student loans, and there is no data regarding lending related to debt secured by real estate in the consumer credit report. Overall, consumer credit grew by 5.5 percent in the third quarter. While home and stock prices are going up, it is believed that those without such assets may struggle as prices rise.
If an individual is struggling to pay off his or her debt, it may be worthwhile to look into bankruptcy. It may be possible to get relief from both unsecured debts like medical bills or credit card debt as well as secured debts like home or auto loans. In rare cases, it may be possible to get relief from student loan debt. Filing for Chapter 13 bankruptcy may make it possible to have debts reorganized over a three- or five-year period.
During this period, creditors generally cannot foreclose on a home or repossess property. Therefore, it may provide individuals with the chance to retain property while catching up on overdue payments. Furthermore, creditors generally cannot take steps such as contacting debtors or taking other actions such as suing a debtor. An lawyer may be able to talk more about these and other benefits of bankruptcy as well as who may qualify to file for it.