Bankruptcies in Utah Rising, Despite Federal Laws to Stem the Tide

None by KCPW

(KCPW News) Bankruptcy filings are up for the third straight month in Utah. The trend is a national one that has some experts wondering if Congress took the wrong approach passing new bankruptcy laws in 2005. The new regulations made some types of bankruptcy harder to claim and required credit counseling for would-be filers.

"By then it's sort of too late," says United Way of Salt Lake's Bill Crim. "If you want to attack the issue from the financial education and behavior standpoint, you really have to start much, much sooner."

Crim agrees financial education is critical, but United Way research shows it's getting harder for families - especially middle class earners - to make ends meet.

"Significant numbers of middle and moderate low-income familmies are living paycheck, not because they are irresponsible, but because the cost of housing and health care has increased more than median wages."

And Crim says middle-class families in Utah seem to be struggling to save money in the face of vast financial options now available - many of which carry high levels of risk. The United Way offers debt counseling and tips for saving money at www.utahsaves.org.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW