Louisiana reports more personal loan defaults
More consumers who are facing debt have turned to small personal loans to meet their financial obligations, pay for school or make a purchase on a big-ticket item. But public records in Louisiana reveal the state has seen a spike in the number of unpaid bills, personal loan defaults and debt collection proceedings.One area, Terrebonne Parish, has seen the number of lawsuits related to debt collection increase by 39 percent from 2008 to 2009, as the number of cases grew from 2,238 to 4,426, according to Louisiana newspaper Huoma Today. In a five-year period, the number of collections lawsuits has doubled, the newspaper added.
Public records show many of the debts were related to unpaid medical bills, credit card debt and personal loans backed by collateral, ranging from weed trimmers to tires and rims.
Despite the number of credit counseling and relief programs available to consumers, the amount of debt continues to vary disproportionately from state to state.
