There is no question that our economy has been struggling for quite some time. As reports continue to show improvements in the job market and unemployment rate, many are beginning to feel hopeful. However, we are far from being out of the woods and still have some big threats lurking around the corner.
While most of those experiencing problems with debt understand the personal toll it can take, very few people actually know the potential for fallout over their debt burden. As bankruptcy filings continue and debtors seek other solutions, the government is forced to step up policing efforts of fraud investigations. Debt relief scams are at an all time high and many consumers are suffering even greater losses at their hands, which in turn costs the government more money in regulations and litigation.
The foreclosure crisis has brought a large burden to our nation’s wallet over the last few years. Homeowner losses, a backlogged foreclosure process and millions of homes sitting abandoned or with lost value cost both local and federal agencies money. Increased efforts at resolving foreclosures and helping homeowners have cost our government billions. From prosecuting fraudulent lending practices to offering incentives to banks in hopes of providing relief to homeowners, the government has had to foot the bill for much of the trouble in the housing market.
America isn’t alone in its fight with national debt and economic turmoil. Greece, Spain and Japan are all on the verge of economic collapse that could send our own economy further into debt. As the world turns to the United States for help, our government will be forced into a bailout that is sure to sink our own finances further into the red. These days one country borrows from one to support itself, only to then give to another before it sinks too far into debt to be sustainable.