The United States Gross Domestic Product (GDP) is a widely accepted measure of the health of our economy. This week the fed announced that Q3 GDP grew at a rate of 3.3%, a level of growth America hasn’t seen since 2014. This news should be a beacon of light to everyone working hard to improve their financial situation. After all, a better economy means a better opportunity to earn more and pay off down debt.
Federal Reserve on 2017 GDP
The Federal Reserve is tasked with managing the nation’s money supply which includes moderating long-term interest rates. They do this in an effort to stabilize inflation and in turn strengthen the overall economy. In good times, the Federal Reserve will increase interest rates to match demand. In bad time, the banking organization will lower them. The best of both worlds occurs when the economy is healthy and the interest rates are still kept low which is the exact situation we find ourselves in now.
Great Time for Chapter 13 Bankruptcy
While change is the only constant, for individuals who are debating on filing Chapter 13 bankruptcy, or are already in a Chapter 13 repayment plan, this is the perfect storm to locate new opportunities and really dig out of debt. If you haven’t filed for Chapter 13 bankruptcy, but are facing foreclosure, automobile repossession, or utility cutoffs, filing for Chapter 13 protection puts an immediate stop to these processes while you work with the bankruptcy court and bankruptcy trustee to submit a repayment plan outlining how you will pay back your debt over the next 3-5 years. Another great reason to work extra hard to pay down your debt is that interest rates usually don’t stay as low as they are now when the economy is on an upswing. By paying your debt off early, you will be exiting Chapter 13 at a terrific time to start rebuilding your credit.
If you’ve been struggling with consumer debt or are facing repercussions from excessive debt, you should contact your local bankruptcy attorney where you live. In an initial meeting with a bankruptcy lawyer, you’ll learn about debt counseling, the best way to approach your debt, and how to eliminate debt using Chapter 7 or Chapter 13 bankruptcy.