Friday June 1, 6:00 am Eastern Time
Press Release
SOURCE: LowerMyBills.com
32 Million American Families at Risk for Bankruptcy
LowerMyBills.com Study Finds That American Families Are In Growing Financial Peril
LOS ANGELES, June 1 /PRNewswire/ -- The threat of bankruptcy is real! This year more people will file for bankruptcy than will graduate from college. And as a result of the economic downturn, stock market devaluation and thousands of corporate layoffs, a growing number of families have reached the brink of economic crisis.
This spring, LowerMyBills.com examined data from the U.S. Federal Reserve's Bureau of Economic Analysis and Bureau of Labor Statistics' Consumer Expenditure Survey, in addition to various other economic indicators, to reach these staggering conclusions. As Congress enacts tougher bankruptcy legislation, American families are fighting off creditors and searching for answers.
``Most American families are living paycheck-to-paycheck,'' said LowerMyBills.com founder and CEO Matt Coffin. ``It takes only one negative economic event to push a family into bankruptcy and home foreclosure, which in this weakening market is becoming more likely.''
The LowerMyBills.com study found that Americans are dipping into their past savings, selling investments and running up a staggering amount of debt to cover their growing expenses. The Bureau of Labor Statistics Survey indicates that the three lowest income quintiles of American families, representing about 60 percent of Americans, spent more than their after-tax income in 1999.
The two lowest quintiles, representing about 40 percent of Americans, earned on average $12,338 after taxes and spent on average $20,808 in 1999. That's roughly 32 million households running an annual deficit of $8,160. This debt is primarily attributed to large amounts of short-term liquidated credit. Furthermore, the Federal Reserve reports that consumer debt has now reached $1 trillion, or nearly $9,000 per U.S. family.
``American families are searching for solutions and tools to lower their monthly expenses,'' asserts Mr. Coffin. ``They need to recession proof their savings. In this time of economic insecurity, it doesn't help that the government is rewriting bankruptcy laws to make it harder on the average person to set aside debt that is dragging them down. My mission at LowerMyBills.com is to provide the tools and guidance for the American family to protect their finances and secure their children's future. LowerMyBills serves as preventative medicine for this looming crisis,'' adds Mr. Coffin.
``Many families are unaware of how much money they actually owe, and how to handle their debt,'' says Consumer Advocate David Horowitz. ``Current bankruptcy laws are unforgiving, often forcing debtors into unrealistic payback plans that create an undue hardship on the family.''
About LowerMyBills.com
Headquartered in Los Angeles, CA, LowerMyBills.com (www.lowermybills.com) is the premier online destination for lowering all recurring monthly bills. Current category offerings include long distance and wireless phone services, taxes, credit cards, loans, insurance, Internet service, debt reduction, credit ratings and energy. Since its inception, LowerMyBills.com has saved U.S. families more than 50 million dollars.
Reuters
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32 Millionen US Familien vor einem möglichen Bankrott
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