As more and more people wind up in a credit crunch, more and more people are turning to debt consolidation as a possible way out. In the past 5 years thousands of customers have come to LegalMatch.com seeking debt consolidation attorneys.
Where are most of these cases happening? Not surprisingly, states with the highest populations have the highest numbers of cases:
Only one state, New Jersey, managed to nudge its way past its rank of 11th in population to 9th place on the list. It beat out North Carolina, who does not appear on the list despite having almost 1 million more people.
California and Florida, however, seem to top other lists that are not so dependent on population. California and Florida are ranked 2nd and 4th in the Nation in foreclosure rates, and also top LegalMatch’s list of states with the most disproportionate percentage of total national foreclosures to total national households. California and Florida are not alone in sharing some dubious distinctions, however: Ohio and Georgia make an appearance in another unfortunate top-ten list: top-ten highest bankruptcy rates.
All too often, one financial dilemma leads to another. Although debt consolidation does not consolidate mortgage debt, many debt consolidation programs require the debtor to take out a mortgage on their home. Although lowering monthly payments on credit card debt is important, putting up your home for a mortgage should always be considered a last resort. There is the possibility that the inordinately large number of foreclosures in California and Florida has something to do with their similarly high numbers of debt consolidation clients.
More analysis would be needed to see if a true correlation between foreclosure rates and debt consolidation statistics exist. Generally, where there is one financial dilemma, there are probably others, either in the past or looming on the horizon. The states hit hardest by this financial crisis will show high numbers of bankruptcy rates, foreclosure rates, and people with debt problems. Stay tuned for more information on where these numbers are coming from, and where they may be headed.