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Delinquencies rise for some types of loans

There is bad news for loan holders. According to the American Bankers Association, U.S. consumer delinquencies worsened in 2013's second quarter. The composite index used to determine delinquency rates looks at eight types of loans including auto loans and personal loans. While auto loan delinquencies dropped, those delinquencies tied to personal loans and home equity lines of credit rose. Experts claim the delinquencies were propelled by slow job creation and minimal wage gains.

No matter what type of debt one holds, unexpected life changes like unemployment or medical expenses coupled with the struggling economy can make for financial challenges. These situations can make paying off debt extremely difficult or impossible. Fortunately, those in these circumstances can seek debt relief, and an attorney can help.

While there are many debt relief options available, many choose to file bankruptcy. Perhaps the main reason many choose to do so is because under a Chapter 7 bankruptcy one can eliminate debt. Assets will have to be sold, but for some that may be a small price to pay to reach a new financial beginning. Others may choose to file for Chapter 13 bankruptcy where debt is restructured to allow an individual to make more manageable payments.

If one chooses to follow one of these routes, he may feel uncertain about what filing for bankruptcy means for his future. An experienced bankruptcy attorney can present the different debt relief options available to an individual so he can make a fully informed decision in his best interest.

The attorney can also be by the individual's side throughout the process, helping ensure the process goes as smoothly as possible, as much property as possible is kept through use of exemptions, and debt is eliminated, reduced or made more manageable. With delinquency becoming more common in the U.S., those dealing with a spiral of never-ending debt owe it to themselves to seek help.

Source: The Des Moines Register, "Consumer debt payments slide," Victor Epstein, Oct. 9, 2013

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