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Debt brings Oklahoma households crashing down

 
BY DON MECOY | Published: October 26, 2008    Comment on this article Leave a comment

Unlike major financial corporations that are benefitting from government intervention, your household is not too big to fail.

A growing number of Oklahomans are seeking help with crushing debt, experts say.

photo - Ann Garrett Executive vice president and director of retail brokerage at Capital West Securities. <strong></strong>
Ann Garrett Executive vice president and director of retail brokerage at Capital West Securities.

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at a glance
Making

a budget

Although unexpected issues such as medical bills, a divorce or job loss often are involved in forcing consumers into bankruptcy, a lack of planning generally is a precursor, said John Cooper, president of Consumer Credit Counseling of Central Oklahoma. Cooper’s checklist includes:

→Basic budgeting skills are critical. Know how much you make and how much you spend.

→Families must communicate about expenses.

→Buy only what you need.

→Understand the importance of saving money.

→Get some help if you need it.

MONEY TIP
Check your

credit report

You can check out your credit report from each of the three major credit bureaus once per year. To do so, go to www.annualcreditreport.com. You will need to supply your name, date of birth, address and Social Security number. The site will ask you some personal questions, such as which company you make your mortgage payments to, to confirm your identity.

If you don’t have access to the Internet, you can request a copy of your credit reports by calling (877) 322-8228.

"The people we’re seeing now, their debt is much more severe,” said John Cooper, president of Consumer Credit Counseling of Central Oklahoma. "They are in much worse shape that they have been. Their situation is much more dire.”

In stark contrast to the tight credit markets that are crippling some of the nation’s largest corporations, consumers seem to have access to too much credit, Cooper said.

"There are more ways for them to get money when they need it and get desperate,” Cooper said.

Opening new credit card accounts, payday loans and Internet-based lending services all serve to deepen some consumers’ problems, he said.

"It limits what we can do for them,” Cooper said.

In Oklahoma, bankruptcy filings have been on the rise. Through September, more than 8,000 bankruptcies were filed in Oklahoma.

That’s on pace to exceed last year’s total of 8,748. Nationally, nearly 1 million bankruptcies were filed in the year ending June 30, marking a 28.9 percent rise over the previous 12 months.

Debt hurts everyone
Like the collapse in the housing market, consumer struggles with credit card debts are beginning to be reflected on the balance sheets of major corporations. Moody’s Investors Service said credit card charge-offs rose 48 percent in August, according to the ratings agency’s latest data on $435 billion in credit card loans backing securities that the company rates.

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Related Topics: Business, Personal Finance, Consumer Credit and Debt, Credit Card Debt



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