Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Consumer
Bankruptcies hit college grads
NEW YORK (9/21/11)--A college degree may make you more attractive to employers and improve your earning potential, but it doesn’t protect you from bankruptcy. Those with college diplomas accounted for 13.6% of the 1.5 million personal bankruptcies filed in 2010--an increase from 11.2% in 2006--according to a recent study from the Institute for Financial Literacy, South Portland, Maine (NYDailyNews.com, Sept. 14). The study surveyed more than 50,000 debtors in credit counseling or money management courses. While fewer white collar jobs and reductions in income may be partly to blame for the trend, 70% of those filing for bankruptcy cited being overextended on credit as the prime reason for filing, according to the report. Consumers can’t control the overall impact of the economic downturn, but they can control their debt level. Here’s how you can you prevent being overextended:
* Reduce necessary expenses.It’s easy to cut back on everyday costs. Keeping your thermostat at a steady temperature, purchasing generic items instead of brand name goods, and unplugging electronics when not in use are just a few ways to reduce expenses. * Limit unnecessary expenditures. Rent a movie instead of going to the theater, prepare meals at home instead of dining out, and visit parks and libraries to take advantage of free entertainment. * Curtail credit use. If possible, try not to make any purchases with credit cards. That way you won’t continue to add to your debt level. Instead, use cash, checks, or your debit/check card for purchases. Monitor your online banking account to prevent your account from being overdrawn.
For more help controlling spending, read the Financial Fitness Challenge “Run a Financial Stress Test” in the Home & Family Finance Resource Center.


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
18 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
19 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
19 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
20 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
21 hours ago