When overall consumer debt increases in Tennessee and across the country, financially savvy parties may believe that points to consumers feeling more confident about their income and spending habits. However, confidence could at times lead to too much spending and result in individuals becoming overwhelmed with their debt. As a result, they could end up facing property repossession or foreclosure.
It was recently reported that consumers owed around $8.69 trillion in mortgage debt at the end of the first yearly quarter. This figure was noted as being two percent higher than that of the same time last year. This figure could point to more individuals feeling that they will be able to take out a mortgage and successfully make payments as needed.
It was also mentioned that younger adults are not jumping into action as far as purchasing homes. This aversion to mortgages could be due to the hardships many individuals faced during the economic decline. If a person takes out a mortgage on a home or a loan for a car, those items could be at risk for foreclosure and repossession if a person falls behind on their payments due to job loss or other financial emergencies.
Property repossession or foreclosure is not an action that a person wants taken against them and their property. However, it is an unfortunate outcome for many individuals who are unable to make their payments. That does not mean that this has to be the inevitable outcome, though. Tennessee residents may be able to stop foreclosure and repossession if they are able to take the right steps. Information on how to go about moving forward with such action is available for interested parties.
Source: The New York Times, “Consumer Debt Suggests Growing Confidence“, Floyd Norris, May 16, 2014