The NY Post reports that while bankruptcies are still nowhere near Great Recession levels, they are rising noticeably. John Aidan Byrne writes:
New York state’s bankruptcy filings, for instance, have risen steadily the past three years, hitting 34,711 in 2018, up from 30,112 in 2016, according to the American Bankruptcy Institute (ABI), based on data from Epiq Systems.
More consumers nationwide are falling behind on their payments and filing for bankruptcy to resolve overwhelming debt loads. And low unemployment, an uptick in average wages and the latest Fed interest rate cut have not restrained the debt monster. Some cash-strapped consumers are even finding relief at food pantries.
“In high-cost cities like New York, personal incomes are not often enough to pay the household bills,” Zac Hall, vice president of anti-poverty programs at the Food Bank For New York City, told The Post. “We are seeing people using consumer debt as a way to make ends meet when they come here,” he added, citing the pressures his nonprofit faces to keep up the distribution of food and meals at no cost to some 1.5 million New Yorkers.
And unmanageable debt is also forcing more companies to file for bankruptcy, triggering a wave of job cuts — with nearly 43,000 job losses announced in the first seven months of this year, according to a new report by Challenger, Gray & Christmas. It’s almost 20 percent more than all bankruptcy-linked job cuts in 2018. In the latest example, last week Barneys New York said it had filed for Chapter 11 bankruptcy protection.
As bankruptcies rise, it’s important to remember the best asset you can have, your job. Continuing to work and to save as long as you can will prepare your retirement for the ups and downs of economic volatility better than anything else can.
Some Americans haven’t saved at all and will keep working whether they wish to or not. Others enjoy working and will keep doing so even if they have saved enough to stop. Americans today are more likely to keep working into old age, whether they want to or not. Some are paying for their kids, who have had trouble enter the job market, and some need to supplement their pensions with additional earnings to maintain their lifestyle.
Whether or not you plan to keep working as long as you can, or to retire at 30, I encourage you to save as much as you can bear and then save a bit more. Save for yourself, because no one else will.
