Consumer finances remain strong, but they are being undermined by high inflation, high interest rates, and exhausted excess saving for some. Hence, bankruptcy filings are showing a deterioration in household finances. A fourth-quarter decline in filings had been seasonally normal, the fruit of preparation for holiday spending, and the streak of declines in place since 2008 remained intact. U.S. courts reported that non-business filings come in 19% above their year-ago level after rising 13.9% in the prior quarter. On a quarter-to-quarter basis, filings dipped 2.2%. Business filings rose in the quarter, up 11% from the third quarter. They were up 53.2% from a year earlier as high interest rates take a toll. This compares with a 37.7% increase on a year-ago basis in the prior quarter.
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