Personal bankruptcies in America have reached a record high. In the 12 months leading up to June 30, more than 1.6 million bankruptcy petitions were filed naitonwide. It was the most ever in one year and a 9.6 percent spike compared with the previous year's record-setting numbers.
The cause is thought to be an overflow from the free spending 90s, but other factors such as unemployment, high medical costs and unexpected losses have also contributed.
For those of you feeling overwhelmed by debt, bankruptcy is not your only option. Individual companies usually have their own programs designed to keep you up on payments and you can also check into non-profit companies who's only job is helping people get out of debt.