Examining Debt in Florida

Florida residents know firsthand how devastating this most recent recession has been. While the economy is showing some positive signs, many Floridians are still not seeing these benefits. With unemployment remaining high, and home values struggling to rebound, many individuals throughout the state are experiencing debt problems.

In fact, the debt that some residents are experiencing is actually much higher than the national average. A recent study by Credit Karma, a consumer website, examined the debt of South Floridians to learn more about the extent of debt within the region. The results showed some disturbing trends.

Florida Mortgage Debt

South Florida homeowners have seen their home values drop, and this has resulted in many being trapped into mortgages that are for more than their homes are worth. The average home mortgage debt in South Florida is just under $200,000, which is a staggering 19 percent higher than the national average. The high payments have led to many homeowners having to file for Chapter 13 bankruptcy protection.

Bankruptcy may allow homeowners to keep their homes, but it may not be the best option. It will be important to examine each situation to better understand how these homeowners should try to resolve their debt issues.

Student Loan Debt

Student loan debt is also a major problem. The average student loan debt is over $32,000, which ends up being 11 percent higher than national rates. Many people have lost their jobs during the recession, and went back to school to try to help them as they search for new places of employment. Once school ends, individuals find themselves unemployed with even more debt. While student loan debt is not dischargeable in bankruptcy except in cases of severe hardship, bankruptcy may allow other funds to be freed up so that the loans may be repaid.

Credit Card Debt

There was some positive news for South Floridians on the debt front. Many individuals have a significant amount of credit card debt. While some may try to negotiate with credit card companies in an effort to reduce the amount of money they owe, this can be extremely difficult. In the region, credit card debts are roughly $700 lower than the U.S. average. It is unsure if people are spending less, or if the debts have disappeared because people have filed for bankruptcy.

Dealing with Financial Problems

However, some of the debt that is impacting Floridians may be inescapable. Florida has a relatively high cost of living. Ordinary goods are much more here than in other locations. This can lead to people having less money to pay other bills, which could allow some expenses to rapidly increase. Even households that stick to budgets could find themselves experiencing financial hardships.

If you are having trouble making ends meet, speak to an experienced bankruptcy attorney to understand the options that may be available. Waiting too long to discuss the challenges that you are facing could make your situation worse.

Article provided by B&B Law Group
Visit us at www.tampadebtsolutions.com

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