Financial Crisis Spreads to Retailers
By Kurt O'Keefe, Attorney at Law on Apr 15, 2008 in Benefits of Bankruptcy, Michigan
As the Fed has pumped up the money supply, prices are inevitably rising.
Gas, now food, increasing first.
With mortgage-home equity borrowing having dried up, it seems people are using credit card debt to make up the difference.
This is not a good strategy. You cannot borrow your way out of a debt problem.
Retailers are starting to fail, as consumers have less to spend on items other than food and gas.
Foot Locker is closing 140 stores, Ann Taylor 117 stores, and Zales 100 stores. The effects will continue throughout the economy, as businesses fail, jobs are lost, borrowing increases, and bankruptcy filings go up.
As always, the best way to manage your finances is to know where you are, write down what your actual income and living expenses are for each month.
See what you can afford.
If you are borrowing to stay where you are, just to pay the expenses you have, you might contact an experienced bankruptcy attorney, like those on this blog, just to review your choices.
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