Debt, since the recession began, has been increasing not only for individuals but the nation as a whole. With foreclosures and the higher percentages of unemployment, credit cards have become a necessary means for some to survive. However, as this debt continues to pile up, it can put many families in danger.
Alabama citizens and others throughout the United States have and continue to experience financial challenges. During these hardships, foreclosure may be unavoidable, but there are debt relief mechanisms, such as bankruptcy, that may be necessary and ultimately quite helpful. For instance, when a person files for Chapter 13 bankruptcy, there is potential to stop home foreclosure proceedings from continuing.
In a previous post we examined the still ever-existing debtor's prison suffered by many Americans, only to see that this can be worsened by the difficultly of correcting an individual's credit report. Credit card debt that is not paid and ultimately sent to collections can shape and influence your credit rating; a rating that will affect your ability to get good interest rates for future credit cards, mortgages and automobile loans.
Alabama courts are at the center of a major controversy due to recent reports that people who are in debt are being thrown in jail here and in other states, as the result of hard-hearted creditors.