Obama Mandates Credit Counseling Before Bankruptcy

Americans have had a complete turnaround in their spending habits. Those Americans who were working during the relative prosperity of the 1990s, but perhaps missed some of the recessions in the 1970s or late 1980s, tended to spend everything they made – and even some that they didn’t make.

Of course, excessive spending was a problem across the board, with even major banks giving out more money than they could afford. All of this meant that when the bubble burst, too many people were caught between a rock and a hard place.

For many, the housing market has made it very difficult to stay afloat, financially. These recent financial difficulties have resulted in a much more frugal America. In addition, many people who have been in financial trouble are now seeking reputable debt reduction and credit counseling services to get out of the hole. While a number of these people are doing so of their own volition, others are now doing so for a different reason.

Washington has kept up with the times, as well. President Obama has now declared that anyone wanting to file for bankruptcy must first meet with a not-for-profit credit counseling agency.

The purpose of this is that a lot of bankruptcies might be avoided if people can gain control of their finances through these free services. Bankruptcies are a serious blight on anyone’s record, and in order to best manage a growing credit problem, this solution seeks to help mitigate the number of bankruptcies.

Fortunately, record numbers of American consumers are seeking these credit counseling services to help themselves avoid bankruptcy and get on a stable financial footing.

It’s important to note that not everybody who seeks these services is on the brink of bankruptcy. Some individuals are just not going in a positive direction and they appreciate the ability to map out their future in a way that will keep them out of debt and financially solvent.

Currently, unemployment is hovering around 10% nationwide. The state of the economy is still precarious, and even experts are not yet sure how soon recovery will occur. If the economy is not on the rebound yet, it is even more imperative for Americans to take stock of their finances.

Those that have taken advantage of these credit counseling services are no longer as afraid, because they have a solid plan to depend upon as they navigate these tough times. Under this new mandate, Americans who are stubbornly refusing to get help will eventually have to do so whether they want to or not.

These difficult times should serve as a wake-up call to people who have been resting on their laurels. The fact of the matter is, it will be challenging to stay ahead in the current economic situation, so there is no reason not to seek out the help of a not-for-profit credit counseling service to see where you are and how you can improve your unique circumstances.

In the long run, it’s wise to have a financial plan for yourself, regardless of the status of the economy. Armed with a solid plan, you can weather the economic storm and come out ahead.

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