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Consumers have more credit card debt than savings

After being unemployed or hospitalized for quite some time, a number of consumers are forced to use their savings. When their savings are not enough, they may start building up credit card debt. A survey conducted by Bankrate revealed that 37 percent of consumers in Iowa and throughout the country have credit card debt that is more than their savings.

The survey was conducted on over 1,000 participants, and Bankrate's chief financial analyst stated that most of them have lack of savings and barely any available credit on cards. This ends up becoming an issue since emergencies can occur frequently and when consumers least expect them. According to a survey conducted by American Express, it was revealed that 50 percent of Americans faced unexpected expenses in the past year. Out of those expenses, 46 percent was due to car issues and 44 percent was due to medical.

Family Christian Stores files bankruptcy

Struggling businesses can find it hard to pay debts, especially during tough economic times. A company that is in debt with multiple publishers has filed for bankruptcy. Companies in Iowa and throughout the country file bankruptcy for a number of reasons and this case is no exception.  According to reports, Family Christian Stores filed for Chapter 11 bankruptcy after losing a substantial amount in profits.

Family Christian Stores was founded back in 1931 and was formerly named Zondervan Publishing House. It is one of the largest Christian bookstore chains in the United States and sells Bibles and books. However, the company has found itself in debt to publishers, including Tyndale House and HarperCollins Christian Publishing. In spite of the bankruptcy filing, the company does not plan on terminating staff members or closing down any of its stores. Instead, the company plans to sell off assets during the bankruptcy proceedings.

Using debt consolidation for credit card debt

Understandably, facing an enormous debt situation is challenging. Iowa consumers often use credit cards to cover necessary items when they do not have cash on hand. Fortunately, debt consolidation can help to pay down their credit card debt, but consumers may also want to know the benefits and consequences.

Consolidation loans may be a good choice when consumers want to pay off their debts quickly. With this type of loan, consumers will be given a certain amount of time to pay off the debt since they will not be paying just the monthly minimum on their cards. Consolidating debt can also be beneficial for those who want to lower interest rates and streamline payments into one monthly bill.

RadioShack filing Chapter 11 bankruptcy

When businesses see their profits shrinking due to a changing market and increased competition, bankruptcy may be the best choice for those businesses. RadioShack, a popular retail chain with stores in Iowa and all across the country, is headed toward bankruptcy. Reports suggest that the bankruptcy filing could occur very soon.

RadioShack is expected to close down almost half of its stores. The majority of the remaining stores will be operated in a partnership with another popular retailer, Sprint. RadioShack is filing a Chapter 11 bankruptcy, and, under the filing, Sprint is expected to partner with the company at nearly 2,000 locations. In addition, the stores' branding will reflect both Sprint and RadioShack.

Cointerra files for Chapter 7 bankruptcy

Adverse financial circumstances can cause a multitude of negative consequences for businesses and consumers. For businesses, this could mean closing their doors for good. Sometimes these financial circumstances are so unbearable that Iowa companies file for bankruptcy to preserve their businesses. In one such recent case, Cointerra filed for Chapter 7 bankruptcy to liquidate its assets.

At first, Bitcoin gained popularity globally after being launched in 2008. Companies use miners to fix serious issues with software and verify transactions. Cointerra is a Bitcoin mining company, but in the last year, the dollar dropped to nearly 70 percent.  In addition, the company was faced with millions of dollars in debt.

Solar energy company files for bankruptcy

Often, one huge circumstance can cause a downward spiral in someone's finances. Most Iowa consumers and businesses file for bankruptcy when the debts are out of control. Recently, it was reported that the owner of a solar company submitted a bankruptcy filing.  

The business was once growing at an accelerated rate of speed, but now, the company apparently owes millions in back taxes and debts. Back in 2011, Inc. Magazine recognized the company for its accomplishments, and in 2012, it was included in the Hall of Fame of the county's Chamber of Commerce. However, in 2013, the company laid off employees and closed its doors. Reports indicate that the company owes hundreds of customers money, and some are apparently owed thousands of dollars.

Pizza chain files for bankruptcy and closes its doors

There are many reasons why businesses would file for bankruptcy. A series of financial setbacks can lead up to bankruptcy filings, or it could be one major crippling event. Iowa blog readers may be interested in learning about a pizza chain that recently filed for Chapter 7 bankruptcy.

The business, HomeMade Pizza, is a chain that offers consumers pizzas that are ready-to-bake. It was created in the 1990s by two brothers-in-law in order to provide fresh ingredients, but unfortunately, it was not a profitable venture. Even though it was popular among fans, there was not enough of a revenue stream. According to the bankruptcy filing, the company has less than $50,000 in assets but owes over $10 million in debts.

Retailers often file for bankruptcy in January

Not only do consumers face financial dilemmas, but so do businesses. When Iowa businesses are on the verge of closing their doors, they often seek bankruptcy as an efficient way to relieve their debts. Reports indicate that January is the month of bankruptcy for many retail stores throughout the country.

Companies usually struggle when there is a lack of sales and not enough revenue. The companies struggle even more when payroll cannot be met and basic debts cannot be paid. When companies file for bankruptcy, they are allowed to pay out a fraction of what is owed to vendors and lay off employees. They are also allowed to shut down stores that are not successful. Several companies filed for bankruptcy in the last month, and these companies include Deb Shops, Mexx and Delia.

Pinkberry files Chapter 7 bankruptcy protection

Financial dilemmas can have a tremendous effect on consumers and businesses throughout the country. Many Iowa businesses with a huge debt load have even found themselves filing for bankruptcy in order to eliminate debts. In one recent case, a branch of Pinkberry frozen yogurt has filed for Chapter 7 bankruptcy.

The company has over $1 million in debts and only a little over $800,000 in assets. Pinkberry is asking for the company to be liquidated through Chapter 7 bankruptcy. The company has branches in other locations, but it's not known if they will stay in business in the long-run. It's a possibility that some of the locations will end up managed by the head corporation. At this time, the creditor that is owed the most is BB&T, and it is owed over $500,000.

Paying credit cards may now take priority over many medical bills

It's not uncommon for consumers to be faced with medical debt and credit card debt at the same time. Throughout the years, both debts have caused negative impacts on credit scores. Under these circumstances, Iowa consumers may wonder if they should make paying off medical bills or credit cards their first priority.

With the new FICO scoring, medical bills that were forwarded to collection agencies will not impact their credit scores as much. Since medical debt is no longer weighed heavily, consumers could benefit from paying their credit cards first. Credit cards have higher interest rates than medical bills and are more damaging to credit scores.

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