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Nov
27
Credit Ratings in Chicago Result in Downgrade for Second Time

Credit Ratings in Chicago Result in Downgrade for Second Time

On behalf of Law Offices of Chad M. Hayward, P.C. posted in Credit Card Debt on Wednesday, November 27, 2013.

If you live in Chicago, you’re probably aware that the city’s credit rating was dropped once this year already. Personally, to help yourself against a low credit score, you can ask a Chicago credit card debt attorney for help. But in this case, the city is in bigger trouble than that. In fact, the credit rating agencies have downgraded Chicago’s debt for the second time, signaling that the city is still in trouble.

According to the report from Nov. 20, Fitch Ratings downgraded $8.5 billion of Chicago’s bonds and labeled its outlook for future downgrades as negative. Fitch claims that the city hasn’t been able to negotiate a solution to the problem, which is why the second downgrade has taken place. The state of Illinois is going through what is called a $100 billion pension crisis, which means it has around $7.5 billion in unpaid bills. The legislature allegedly met to speak about the issue, but met for only five days. Chicago allegedly owes $14 billion in general obligation bonds and another $19.5 billion to firefighters, municipal employees and police officers’ pension plans. Unfortunately, all the bills together add up to nearly four times the yearly budget for the city, which is why it’s such a serious and growing problem. That budget also doesn’t include unfunded liabilities the schools and other agencies in Chicago owe, according to the news.

With the downgrade in place, the city is also going to have to face higher interest rates on the bonds it owes. If you’re in a similar situation to this, you probably understand how quickly credit can get out of hand. Owing more than you have isn’t that uncommon in the United States, even at a city or state level. Talking to an attorney may be able to help you figure out a way out of debt.

Source: The New American, “Credit Rating Agencies Downgrade Chicago’s Debt, Again” Bob Adelmann, Nov. 20, 2013


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Locations

We have office locations throughout the Chicago Area:

Chicago (Downtown)

Schaumburg

Oak Brook

Naperville


All calls are routed through our Downtown office for your convenience.

Phone: 312-967-3159

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