BY ELIZABETH LAZAROWITZ
DAILY NEWS BUSINESS WRITER
Wednesday, September 14, 2011
Link to article: http://articles.nydailynews.com/2011-09-14/news/30173751_1_filers-personal-bankruptcies-institute-for-financial-literacy
These days, book smarts may not add up to financial success.
The number of bankruptcy filers who have college degrees has swelled more than 20% over the past five years as the impact of the economic downturn broadens, a new study showed.
Those with just a high school diploma still account for the biggest proportion of bankruptcy filers, making up more than a third of them, according to a report by the Institute for Financial Literacy.
But bankruptcy filers with college diplomas climbed to 13.6% in 2010 from 11.2% in 2006. Those with an associate's or graduate degree also climbed, while those with just a high school diploma slipped.
"There's this mythology out there that if you go to college and you get a degree, you're going to do financially better," said Leslie Linfield, the institute's executive director. "I think this data is starting to erode at this myth."
Last year, personal bankruptcies rose to 1.5 million, according to government data.
While bankruptcy filers are becoming better educated, they're also increasingly well-heeled. The percentage of filers making more than $60,000 jumped 66% in the past five years, the survey showed.
Linfield pegged the trend largely on big losses in white-collar jobs. More consumers surveyed blamed a reduction of income or job loss as a reason for their financial distress.
Still, the biggest reason for their money problems remained being overextended on credit - more than 70% of filers gave that as the main cause.
A particularly worrisome trend, Linfield said, is that bankruptcy filers are aging. Consumers aged 45 to 54 made up the highest proportion of them in 2010, a shift from the prior year, when those aged 35 to 44 held the top spot.
That could leave many older Americans in a tight financial spot as they approach retirement.
"At 54, do they really have enough time in front of them to start over?" Linfield said. "They are at risk."
The group surveyed more than 50,000 debtors in credit counseling or money management courses.
This blog is updated by the San Diego Bankruptcy Law Firm. The blog is designed to illuminate, update and educate consumers about their bankruptcy rights. Our staff of Bankruptcy Attorneys help consumers file for bankruptcy protection under Chapter 7 and 13 of the Bankruptcy Code. Feel free to contact our Bankruptcy Lawyers for a free consultation at 619-260-1800 or visit us at www.gobksandiego.com
Showing posts with label college. Show all posts
Showing posts with label college. Show all posts
Wednesday, September 28, 2011
Monday, September 26, 2011
Marriage, College, Job Won’t Ward Off Bankruptcy
September 13, 2011, 3:15 PM ET
Associated Press
By Eric Morath
Link to Article: http://blogs.wsj.com/bankruptcy/2011/09/13/marriage-college-job-wont-ward-off-bankruptcy/
A wedding ring, college degree and a well-paying job: the American dream or a recipe for bankruptcy?
Some of the factors often associated with financial success are increasingly becoming correlated with personal bankruptcy filings, a study released Tuesday by the Institute for Financial Literacy found.
The study found that from 2006 to 2010, bankruptcy filings increased among college graduates and those earning $60,000 a year or more. What’s more, last year, 64% of bankruptcy filers surveyed were married—a number that also increased from five years ago.
“The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum—including college educated, high income earners,” said Leslie E. Linfield, executive director the institute. “While less educated, low income individuals continue to represent the typical bankruptcy filer, this report underscores sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups.”
The survey collected responses from some 50,000 of individuals that filed for bankruptcy in the past five years. All respondents had sought credit counseling.
The study found that those holding a bachelor’s degree accounted for 13.58% of filings last year, up from 11.2% in 2006—a 21% increase. Those holding high school degrees still accounted for the largest percentage of filers, 36.27%, but their proportion of all filers fell by 8.6%.
Those most at risk for a bankruptcy filing were individuals who attended college but did not complete a degree, the study said. They accounted for 28.7% of filings last year.
“This we suspect is because they have all the burdens of school related debt and none of the rewards of an actual degree,” the study said.
While those earning less than $20,000 per year accounted for nearly 40% of all filings, higher-income earners saw their ranks grow in the past five years, the study found.
Those earning $60,000 or more accounted for 9.2% of all filings last years, up from 5.5% in 2006, a 67% increase.
The study found that the number of filers who were married jumped above 60% in the past five years, from 57.2% in 2006. That out paces the 50.3% of U.S. adults that are married, according to the Census.
Based in Maine, the Institute for Financial Literacy is a nonprofit organization that promotes effective financial education and counseling.
Associated Press
By Eric Morath
Link to Article: http://blogs.wsj.com/bankruptcy/2011/09/13/marriage-college-job-wont-ward-off-bankruptcy/
A wedding ring, college degree and a well-paying job: the American dream or a recipe for bankruptcy?
Some of the factors often associated with financial success are increasingly becoming correlated with personal bankruptcy filings, a study released Tuesday by the Institute for Financial Literacy found.
The study found that from 2006 to 2010, bankruptcy filings increased among college graduates and those earning $60,000 a year or more. What’s more, last year, 64% of bankruptcy filers surveyed were married—a number that also increased from five years ago.
“The Great Recession has had a dramatic impact on the bankruptcy filings of American consumers across the economic spectrum—including college educated, high income earners,” said Leslie E. Linfield, executive director the institute. “While less educated, low income individuals continue to represent the typical bankruptcy filer, this report underscores sophisticated evolution of the profile of the American debtor that now extends to disparate age, income and ethnic groups.”
The survey collected responses from some 50,000 of individuals that filed for bankruptcy in the past five years. All respondents had sought credit counseling.
The study found that those holding a bachelor’s degree accounted for 13.58% of filings last year, up from 11.2% in 2006—a 21% increase. Those holding high school degrees still accounted for the largest percentage of filers, 36.27%, but their proportion of all filers fell by 8.6%.
Those most at risk for a bankruptcy filing were individuals who attended college but did not complete a degree, the study said. They accounted for 28.7% of filings last year.
“This we suspect is because they have all the burdens of school related debt and none of the rewards of an actual degree,” the study said.
While those earning less than $20,000 per year accounted for nearly 40% of all filings, higher-income earners saw their ranks grow in the past five years, the study found.
Those earning $60,000 or more accounted for 9.2% of all filings last years, up from 5.5% in 2006, a 67% increase.
The study found that the number of filers who were married jumped above 60% in the past five years, from 57.2% in 2006. That out paces the 50.3% of U.S. adults that are married, according to the Census.
Based in Maine, the Institute for Financial Literacy is a nonprofit organization that promotes effective financial education and counseling.
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