These days many Florida residents are facing the consequences of having accumulated overwhelming debts, such as credit card debt, mortgages and car loans. There can be many reasons for these financial hardships including job losses, medical expenses and the housing market crash that has hit Florida particularly hard.
Financial challenges can hit any business or organization, even those nonprofits working to provide education and support to others. However, just like any other business, decisions made years earlier in how to run an organization can end up coming back and really financially hurting the livelihood of a group.
As we've talked about in the past, consumer demand largely dictates the market. This means if people's buying choices change, companies and businesses that were once thriving can end up in tough financial situations continuing to go further and further into debt. This in turn can end up leading to lay-offs, which directly affects employees.
After the recession, out of economic insecurity many consumers stopped relying on credit as much. And while this is certainly still true for some, according to the Federal Reserve's monthly credit report, revolving debt -- which is mostly comprised of credit card debt -- rose to $870.2 billion. This represented an $8 billion increase from the previous month.
Recently a company filed for Chapter 11 bankruptcy in an attempt to stop the sale of a rental cottage in Anna Maria, Florida. The company, 3610 Gulf of Mexico LLC, is owned by a real estate agent.