Debt Articles

Less Demand for Debt Relief Help in 2015

Written by Steve Rhode

The latest bankruptcy filing statistics are out from the United States Courts and add support for a continued softness in the demand for debt relief help. Bankruptcy filings fell 12 percent when compared to the same period last year and the downward trend continues.

In March, 2015 Chapter 7 bankruptcies accounted for 64 percent of filings while Chapter 13 filings were 35 percent of filings. I suspect that with record low mortgage delinquencies the increase in percentage of Chapter 13 filers may be due to dealing with student loan issues.

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Another statistic which points at the basic underlying lack of need for debt relief services is the historically low default and delinquency rates in consumer loans.

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The ABA said, “Even as incomes rise and the economy improves, consumers continue to take a judicious approach to managing their finances,” said James Chessen, ABA’s chief economist. “Consumers have regained confidence since the last recession, but they remain careful about taking on additional debt.”

Bank card delinquencies ticked up slightly in the fourth quarter, rising one basis point to 2.52 percent of all accounts. They remain well below their 15-year average of 3.75 percent and have varied by only 14 basis points since the fourth quarter of 2012.

Additional data shared said open end credit is historically low as well.

  • Bank card delinquencies rose from 2.51 percent to 2.52 percent.
  • Home equity lines of credit delinquencies fell from 1.52 percent to 1.48 percent.
  • Non-card revolving loan delinquencies rose from 1.68 percent to 1.80 percent.

All of this news is great for consumers but really sucks for debt relief companies.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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