Becky Gillette MBJ Staff Writer Unemployment rates are low, the American economy is thriving and yet personal bankruptcies are increasing at a troubling rate. But there is an interim step that can help people who are behind on their bills get a handle on their finances in order to avoid bankruptcy. Ann Coleman, manager of the CCCS in Pascagoula and Biloxi, said if consumers are behind on debts and creditors are requesting several months payment at one time, CCCS can give people a restart so they can get back to the minimum monthly payment or even less. It's a good way that people can save their credit rating if they have been through a credit crunch. Coleman said most consumers who use the service have gotten in trouble because of lack of family budgeting combined with overspending.
People shop using credit rather than cash.
People stress shop, and they use credit cards for down payments on things when they can't afford to buy them and shouldn't buy them. They use credit cards for living expenses. They get their paycheck, spend their money, and then use credit to pay the bills. They are people who just want to live above their income. I see it as mostly lack of self control combined with a lack of a family budget.