The Reuters news organization reported on February 8, 2022 that over $4.5 trillion in mortgages were originated in 2021, reaching a historic high for the database, which goes back to 1999. Mortgage balances increased by $258 billion in the fourth quarter to $10.93 trillion at the end of December.
Auto loan originations returned to pre-pandemic trends but loan amounts increased in response to rising car prices, New York Fed researchers said. As car prices have soared, buyers have borrowed more to finance the additional cost.
Credit-card balances increased every quarter in 2021 to end the year at $856 billion. The fourth-quarter gain was the largest in figures dating back 22 years, and while the total amount is still below pre-Covid levels, the gap is closing rapidly.
Many Bankruptcy professionals have been predicting a surge in filings due to Covid-19 and the loss of jobs and small business income. Inflation for consumer goods that is being experienced will also be a factor. However the timing of such a wave is still uncertain.
In my lengthy experience as a Bankruptcy lawyer representing clients in Kern and Inyo County, I have counseled potential clients to see me sooner, rather than later. There can be hard consequences in waiting to the last minute to file. If you are uncertain about your financial future, feel free to contact me.