Do Credit Problems Lead to Bankruptcy Essay -- essays papers

Do Credit Problems Lead to Bankruptcy The reasons we as Americans buy on recognition varies, but without it most of us would believably never be able to purchase necessities such as a home or automobile. The nations economy depends on credit the promise to buy off later for goods and services used today. But along with consumer credit comes consumer debt. With the mount in telemarketing and commercializing in America it is no wonder why Americans feel the impulse to buy now, cover later. The most common progress to of consumer debt is episode debt, which is when a consumer borrows the money to purchase an item and agrees to repay the contribute in equal installments over a fixed period of time. Without installment debt most consumers could not afford to purchase items such as a home. The truth of the matter is that we, as Americans, tend to want to purchase more than than we can afford to purchase when we want it. But, we can afford to pay it out, over time, in fixe d payments. Mortgages, a debt owed on real property, ar the latest form of installment debt. Other forms include automobile loans and credit card purchases. Just pick up the newspaper any time after Christmas and you will find articles on managing your mounting debt from Christmas. Not realizing the conclusion of the consumers debt is one of the most common types of credit problems. Denial may bring a partial role in this problem, but the lack of information seems to be the largest reason for consumer debt. Cre...