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Though numbers of those in debt decreases, debt balances rise

Though it has been reported that the percentage of American consumers with an account in a third-party debt collection system has fallen during the third quarter of 2013, the average account balance facing collection rose.  One economist reported that balances on these accounts increased in "essentially all types of debt."  

Much of this was in non-housing debt.  Yet while household debt delinquencies decreased, home equity lines of credit and student loan balances increased.  Credit card balances and total mortgage debt also increased slightly.

Mortgage originations fell slightly.  Fortunately, new foreclosure notations added to credit reports are 70 percent fewer than what was reported in the second quarter of 2009.

It's always good to know what viable options individuals buried in debt have when facing overwhelming debt.  Undoubtedly many individuals in the state of Washington are also still struggling as well. Many individuals fear both creditor harassment and seizure of assets - including the home. Individuals unable to pay back their loans may wish to speak to experienced consumer bankruptcy attorneys.

Not every debt will necessarily be forgiven.  However, attorneys can often provide a number of options that will allow at least some of the debt to be forgiven or at least reduced.  In some circumstances the debts can be erased through Chapter 7 bankruptcy.  In other circumstances a repayment plan can be prepared for approval of the court through Chapter 13 bankruptcy.  Attorneys can also sometimes deal directly with the creditors in the event that other options are not available.  

Source: Inside ARM, "Number of Third Party Debt Collection Accounts Plummets, But Balances Rise," Nov. 15, 2013

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