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June 2012 Archives

Less debt in Texas is not sign of rebounding economy

Americans have less credit card debt than before. In 2007, 46.1 percent of families held credit card debt averaging a $3,100 balance. In 2010, after the beginning of the economic downturn, only 39.4 percent of American families held balances on their credit cards. The median balance of credit card debt also fell to $2,600 within this time period. Although this may suggest that families in Texas and the rest of the nation are no longer affected by overwhelming debt and the economy is improving, things are not exactly as they first appear.

Students still in danger of overwhelming debt from credit cards

Credit card companies are still targeting college students in Texas and elsewhere to offer them more plastic for their wallets and purses. There has been concern for a long time that inexperience with credit and financial matters could leave some college students at risk for developing bad habits when it comes to money. This may leave them vulnerable to accumulating overwhelming debt due to mishandling of credit cards, which could in turn cause filings for bankruptcy protection from college students.

Overwhelming debt also caused loss of profits for lenders

Many in the credit card industry complained that the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act which became effective in July 2010 would be highly detrimental to their profits. The CARD Act severely limited the industry's ability to raise interest rates and charge fees without prior notice. However, a new study suggests that their claims may be false. In fact, what may have caused significant decreases in profits for credit card companies were their lending policies, which created overwhelming debt for consumers in Texas and everywhere else in the nation.

Americans still in danger of overwhelming debt from credit cards

Although the U.S. economy may seem to be on the road to recovery, there are still signs that Americans do not have enough cash to make ends meet. Consumers in Houston and elsewhere in the country are still heavily dependent upon credit cards to pay for basic living expenses, adding to the nation's overwhelming debt problems. Last year, approximately 40 percent of low- and middle-income households relied on credit cards for expenses such as rent or mortgage payments, groceries, gas, and electricity.

Sadler Clinic in Houston considering filing bankruptcy

The decision to file bankruptcy is often a difficult one. Recently, Houston medical provider Sadler Clinic, which was founded in 1958, is discussing possible plans to file bankruptcy. The clinic has recently been losing money and has laid off as many as 70 doctors and 400 support staff employees. According to the company's president, the clinic has already moved out of its Woodlands location.

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