A recent report from Equifax concludes that a lack of mortgages is what has lead to a decline in consumer debt in South Florida. Debt is down by 4.2%, the greatest drop among the country’s 25 largest metropolitan areas. Out the 25, six posted gains in consumer debt as more people took out mortgage loans and home equity lines of credit following the housing market crash.
Experts say that when it comes to credit card balances and other household debt, the South Florida region has a noticeably smaller share of debt tied to residential real estate. Florida’s large number of foreclosures has significantly effected the rankings since bank seizures essentially wipe out a consumer’s debt on a property. Experts also attribute this to the large number of recent cash purchases in South Florida’s real estate market. These type transactions, that do not create mortgage debt, could also be skewing the numbers.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.