Well, this is actually good news, according to New York Times, fewer and fewer Americans are filing for bankruptcy. While it may not be a sign of an improving economy, it is still a good sign. The number of bankruptcy filings for June dropped by 6.2 percent when compared to the amount of filings in the month of May.
Some are expecting the filings to decline by 5 to 10 percent this year, totaling roughly 1.46 million. The reason for this expected decline is that many consumers have better access to credit when compared to last year.
There is a mixture of perhaps two reasons for this expected drop in bankruptcies:
1. Many persons within the last three years have swallowed less debt and have simplified their lives, leading to less need for less people to have to resort to bankruptcy.
2. Access to credit influences the rate of bankruptcy.
For example, while lenders may make it harder for consumers to borrow money by having stricter guidelines and qualifications, credit cards and loans are no longer an option for individuals to turn too to help them through a financially rough patch in their life. On the contrary, in todays world, as mentioned earlier above, we are seeing it is a tad easier for consumers to acquire the loan they desire, in effect helping them through the tough economic climate and allowing them to view bankruptcy as a very last resort instead of a certain necessity.
So, what do you say, is this a sign of a warmer economic climate happily looming on the horizon? or do you think we can continue to expect a frozen tundra of dashed financial dreams in the coming weeks, months, or years?