The latest report from the American Bankruptcy Institute indicates that the number of bankruptcies is beginning to decline which may be a good sign for bad credit auto loan consumers
November bankruptcy report
At Auto Credit Express, we see that the American Bankruptcy Institute has just released its November report on bankruptcy filings – a report in which the executive director states is “perhaps a positive step” for American consumers.
And while the 13.3 percent drop in filings compared to October may be a positive step, at the same time the 114,487 filings nationwide represented a 2.2 percent increase from November of last year.
"The drop in consumer filings from October is perhaps a positive step that the deleveraging of the U.S. consumer may be underway, after years of expanding consumer debt," said ABI Executive Director Samuel J. Gerdano. "Still, we anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end."
As we see it
The bottom line to the ABI report is that the number of consumer Chapter 7 and Chapter 13 bankruptcy filings finally started making some meaningful lower movement in November, although this good news should be tempered by the fact that the monthly filing number still represents a year over year increase from 2009.
With that in mind, Auto Credit Express offers the following advice to consumers seeking a bad credit car loans before the end of the year:
• Know the information contained in each of your credit reports as well as the individual credit score for each one
• Plan on coming into a bad credit car loan with at least 10 percent down in cash or actual trade equity
• Keep the term of the loan as short as possible
• Buy a compact or midsize car and put off purchase what you really want until after you've reestablished your car credit.
Credit repair and how we can help
For over 20 years Auto Credit Express has helped people with bad credit buy cars and reestablish their auto credit at the same time through a nationwide network of affiliate dealers that specialize in second chance auto loans.
So if you are serious about getting your car credit back on track, you can begin by filling out our bad credit car loan application now.