Today, consumer debt statistics can show just how much trouble the country is in when it comes to debt.

There are many people that face a forever stretching pile of debt and they can not see over the top of it to get through it.

This is very difficult and many individuals will feel trapped and without options.

The Hard Facts

To show the real situation in the US, here are some consumer debt statistics that every American should know.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

Bankruptcy just got more difficult.

Signed by President Bush in April 2005,  the new Fairness in Bankruptcy Reform Act will made it much more difficult for normal people to seek bankruptcy relief.

Bankruptcy is used when all other possible options have been exhausted.

The reasons for this are many, but the biggest reason to keep it last is that it can stay as a negative mark on your credit report for up to 10 years.

Did you know that debt collectors have a limited amount of time to collect on old debt?  There is a Statute of Limitations (SOL) that varies by state that dictates the length of time a collection agency can legally take action to collect a debt.  So if you have an older debt that has not been cleared from your credit report or are being hounded by debt collectors for a debt that you thought was written of several years ago, what should you do? 

First you need to understand that each state has its own SOL that may vary based on the following categories:  open accounts, written contracts, oral agreements, and promissory notes.  Credit card debt is usually considered an open account. 

Congratulations! You have struggled through living in debt and after years of hard work and sacrifice you are this close to becoming debt free. What many people don’t realize as they scrimp and scrape to dig out of that deep hole of debt is that once you achieve your goal, the world does in fact keep turning.