RISE IN BANKRUPTCIES POSES DISTURBING TREND

Years of easy money have triggered hard times for many people. Personal bankruptcies are escalating across the country, and Cape Girardeau County has not escaped this dismal trend.

Cape Girardeau County bankruptcies surged 38 percent in 1990, according to U.S. District court records. Filings grew from 121 in 1989 to 167 in 1990. It's a disturbing trend we hope will moderate. The lure of easy money can be overwhelming to some. Solvency depends on good budgetary planning and the grit to stick with it.

It's not just the "big" guys who can find themselves adrift in a sea of red ink. Many of the personal bankruptcies can be directly linked to overuse of credit cards. Credit can be easily obtained by most people, and credit card applications arrive at many homes by the bundle. The danger often accelerates when people have numerous credit cards, and have built up hefty balances on each one. Buying on credit doesn't always seem like spending real money that is, until the interest gets out of control and it comes time to pay.

Coupled with easy credit is the lessening stigma of bankruptcy. The news is often filled with financial woes. Some people have the misconception that there's nothing to it: pay a fee, file a paper and all their debts will disappear. It's not so easy or painless, especially for those who have a considerable equity built up in their homes or vehicles.

People don't head toward bankruptcy; often they're living on the financial edge when the unexpected arises, such as a medical emergency. America's economic downturn, which began last year, has instigated many of these financial crises as businesses have laid off workers and reduced hours. Nationwide, personal bankruptcies jumped 16 percent last year to 718,107. The American Financial Services Association called it the biggest annual increase since 1986.

The good news is that the Bush administration is predicting the recession will end in the April-June quarter. We hope that forecast is on the money.

People who fear a financial downfall should seek help. Counseling and steadfast budgetary controls may prevent that first domino from toppling. Planning ahead could help more families rebound before they get caught in the snare of excessive debt. Otherwise, they may find out the hard way that bankruptcy is not as easy or painless as they expected.