Foreclosure is only start of problems

With all of the concern about the credit crisis in the housing market, one area has been mostly ignored. That is the effect a pending foreclosure has on all other aspects of the economy as a family struggles to make house payments by “robbing Peter to pay Paul.”

Credit card payments become delinquent and other loans go into default; contract payments are missed and discretionary spending is eliminated.

The only solution some people can see is to declare bankruptcy, even with the restricted regulations now in place. Before this crisis is finally resolved there won’t be any part of the economy that hasn’t been affected.

Rebecca Merwin

Alhambra