Economy driving people to court

“Individuals need to get their finances under control. Start saving. Stop spending every dime.”

A failing economy can make for a flourishing courthouse as debtors file small-claims actions, foreclosures and evictions.

Clerks in Madison and St. Clair counties are seeing a growing amount of legal action to collect debts, including hospital and credit-card debt, and rent and mortgage payments, as the economy slides toward what many economists believe is a recession.

On Wednesday, the Associated Press reported the Federal Reserve chairman is ready to lower interest rates again to brace the economy as higher oil prices spread inflation. Nationwide since last summer, the housing slump has worsened. And the AP reports concern is growing about ’stagflation,’ when stagnant growth is combined with rising inflation. Read more