So far, the biggest downside connected to changes in lending practices has been a troubling rise in
personal bankruptcy rates, usually blamed on credit cards.
Because consumers» debt levels are lower than average, other issues like
high bankruptcy rates and frequently late payments are the likely causes of the state's low credit scores.
Net nets, according to James Montier, have a 5 %
bankruptcy rate probably due to the fact that net nets are conservatively financed almost by definition.
Of course, most of the world agrees with your immediacy, and as such, we have 7 year car loans, 5 years «no interest» furniture loans, and
bankruptcy rates increasing every year.
Not bad, but beyond the default /
bankruptcy rate among the for profit sector, let's look at the national averages before I get all philosophical...
Annual bankruptcy filings are steadily decreasing as you can see in the chart above.However, things like national economic changes or shifts in the job market can
cause bankruptcy rates to skyrocket.With so many students carrying... [Read more...] about Will Bankruptcy Erase Your Student Loans?
«While the debt numbers are worrisome, it's certainly positive to see delinquency and
bankruptcy rates inch down each quarter,» said Malina.
A high level of indebtedness among households could lead to an increased delinquency and
bankruptcy rate for homeowners nationally.
For example, the Frontier State ranks highest in the country for credit card debt yet has the
lowest bankruptcy rates.
And in 2010, four years after Romneycare began, the state had
a bankruptcy rate that was about 30 percent lower than that of other states.
Consistent with this, indicators of financial stress for the household sector, such as loan arrears and personal
bankruptcy rates, remain at relatively low levels.
In turn, this leads to
bankruptcy rates higher than the national average.
The state's personal
bankruptcy rate in 2010 was 12 percent higher than the bankruptcy rate nationwide.
With high - yield bonds like these, the real number to watch is
the bankruptcy rate.
AP's stress index calculates a score from 1 to 100 based on unemployment, foreclosure, and
bankruptcy rates.