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  • Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
    --Donna
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
    --David
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
    --Anonymous
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
    --Anonymous
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
    --Joanna
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.
    --Danielle

Different Debts Compete For Repayment

different debts compete for repaymentFinancial hardship is not a new concept. People have experienced trouble paying their debts for decades. However, what is different is which type of debt has become the priority debt. In today’s economy, different debts compete for repayment. The winner today is vastly different from the winner a few decades ago.

Different Debts Compete For Repayment

The spending priorities of today differ from those in years past. People spend more today on items outside of their budget than in previous years. Expensive coffee, fancy meal home delivery services are a few luxury splurges for many families. People are also spending more on the essentials such as child care and healthcare than ever before. For many, making ends meet becomes difficult and the result is the overuse of credit and loans.

When it comes to repaying debts, there has been an interesting shift in which type of debt is priority.  An analysis of data from the New York Fed Consumer Credit Panel highlights these changes. Specifically, the data looked at the differences in credit cards, auto loans and mortgages.

In the year 2000, auto loans and mortgages shared near equal priority in repayment compared to credit cards. This makes sense as defaulting on a credit card isn’t as punishing as a secured debt like a car or home. However, mortgage debt took a sharp decline in priority repayment during the 2007-2009 recession. This is probably due to the housing crisis of that time. During that time, mortgage  lending was poorly operated. Many people fell into loans they couldn’t afford to repay.

In 2014, mortgage debt began to increase again in priority, but still falls below auto loans. This also makes sense as making ends meet is tough without a car for most people. No car, no way to get to work. No work, no income to pay the mortgage. Therefore, paying your car loan remains the top priority today.

Debt problems can be stressful. If you are struggling to repay your debts of any type, get help today. Contact a Sacramento bankruptcy attorney to discuss your options for debt relief.

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