Two decades ago, the ratio stood at about two-thirds. However, with layoffs and corporate downsizing spreading, financial forecasters expect applications for Chapter 7 and Chapter 13 bankruptcy relief to exceed the record 1.4 million who filed for bankruptcy in 1998. The new bankruptcy law, critics charge, will give banks the leverage to squeeze every last pound of flesh out of debt-stricken consumers even if it means they lose their homes and cars. The result will be a new surge in homelessness and hunger. It was the first decline in 55 years.
Personal savings is at the lowest point in history.
The industry last year mailed out an estimated 3.3 billion credit card solicitations, about 30 per household.