Our Economy-Modesto, CA Lawyer

The American economy thrives on consumer spending. About 65% of our gross national product comes from American spending. Everywhere we look, whether it’s TV, the Internet or radio, we are bombarded with advertisements telling us to buy. These advertising techniques convince people to spend their money even when they don’t have anything. Even the people that can’t afford to spend are encouraged to buy things on credit. Credit card companies hound people to buy things on credit even when these people are paying super high interest rates that they obviously can’t afford. Billions of credit card solicitations were sent to American residents over the past few years, even to those with bad credit ratings. Credit card companies know that people with bad credit will pay high interest rates leading to incredible profits.

When You Need Help-Modesto Attorneys

What happens when you call your credit card companies and ask for a little break? Do they bend over back wards to lower your interest rate or payment? Of course not. They invariably reject their clients. People today are getting virtually no help from their credit card companies as they simply demand that you make payment at twenty something percent interest. Worse yet, if you miss one payment, your interest rate sky rockets. So, when it comes time to file for bankruptcy, you shouldn’t be shedding any tears.

The Loan Modification Joke-Lawyers Modesto, CA

Most loan modifications are rejected by the lenders. To start off with, virtually nobody gets a principal reduction. If you are over $100,000 under water before your loan modification, you will likely be over $100,000 under water after your loan modification. All you can really hope for is a lower interest rate and perhaps a lower payment. However, most people don’t even get that. Homeowners have been getting rejected left and right over the past few months.

So, when it comes time to file for bankruptcy, you shouldn’t feel bad for the creditors that chose not to help you when you asked for it.