University Daily Kansan
Tuesday, October 3, 1978
3
Americans seen piling up record debts
Bv the Associated Press
Americans are piling up record debts in an effort to stretch shrinking paychecks to cover rising costs, but there are signs that the country is still not getting better and fewer people are going broke.
As of the end of July, outstanding consumer installment debt—not counting mortgages—totaled just over $237 billion, according to every man, woman and child in the country.
Total debt, including mortgages, had topped $1 trillion by the end of last year, and outstanding personal debt represented an outflow of 79 percent of personal, aftertax income.
"WE PREPARE PEARCE for the world of work, but we are not equipping them to make good financial decisions," said Robert E. Gibson, president of the National Bank of America Credit, a nonprofit agency with 239 counseling centers across the country.
The increase in borrowing has some
$20,000 cost cited to put liquor issue on November ballot
TOPEKA (AP)—It will cost at least $20,000 to place the question of serving liquor in public restaurants on the November general election ballot, Kansas Secretary of State Jack Brier said yesterday.
Voters in 45 Kansas counties qualified under provisions of the new law to decide if they want the serving of alcohol in restaurants at least 30 percent gross revenues in food sales.
The counties qualified by having petitions submitted to county clerks bearing the signatures of 5 percent of the registered voters urging the issue to be placed on the ballot.
The new law is currently under challenge before the Kansas Supreme Court as a violation of the state constitutional prohibition against the open saloon.
ALTHOUGH IT IS not certain whether the high court will determine the constitutionality of the law before the Nov. 7 election, it now appears definite that ballots will have to be printed and voting machines made in preparation for the election, Brier said.
Brier said the cost of printing ballots was set by law and noted that absencee ballots shall be available by Oct. 17. Regular elections may permit the possession of election officials by Nov. 2.
It is believed the court may hear oral arguments the week of Oct. 23.
in the legal challenge before the court, attorneys for the Department of Revenue, who are defending the constitutionality of the order to be served to file written arguments until Oct. 12.
"I THINK THE fortunate thing is that the matter could have been expited and, if it is found unconstitutional, we could have saved the taxpayers $2,000 to $3,000." Brief said, noting his disappointment that next advance the dates for hearing the case.
people worried, but individuals apparently are keeping their financial heads above water.
"The schedule they have set precludes us from saving this money," he said.
State law sets the cost of ballot printing at $15 for the first 100 ballots and $125 for the rest.
MUSIC NEWS!
Brier said estimated costs in some counties included $1,100 in Leavenworth, $400 in Douglas, $500 in Reno and $400 in Riley.
FOR THE BEST IN MUSICAL
EQUIPMENT STOP BY
THE NEW AND EXPANDED
MUSIC HOUSE
2601 IOWA * 843-3007
OPEN EVENINGS
(formerly Rose Keyboards)
H. Kent Presson of the Administrative Office of the U.S. Courts said the number of people filing for relief under federal bankruptcy laws had declined steadily in recent years after reaching an all-time high in 1975, when the recession was at its worst.
PRESSON SAID that, from fiscal 1978 to fiscal 1978, the number of individuals filing bankruptcy petitions dropped from 234,548 to 172,423, a decrease of 23 percent. The overall number of bankrupt petitions, from individuals and businesses, declined 20 percent in the three-year period. In 1975, they accounted for 66 percent of all those filing bankruptcy petitions; in 1978, they accounted for 85 percent of the filers.
LAWRENCE
LIONS CLUB
announces the exciting Lions
1979 MERCHANT
CHECK GIFT CERTIFICATES
Program sponsored by
40 Lawrence merchants
60 CERTIFICATIONS—NO PURCHASE
NEEDED WHEN YOU SPEND THEM
Your number may be
$200.00
Another reason for the lower bankruptcy rate may be that while inflation is worse—by a factor of 1.25—the percent increase in consumer prices this year compared to a 7 percent boost in 1975—unemployment is much lower, averaging about 6 percent, compared to 9 percent in 1980.
Why the decrease? “Your judgment is good as good as mine,” Presson said. “Credit granters have much tighter control over credit cards. Also, the debtors manage better.”
In West Germany, for example, the amount of after-tax income saved went from 19.5 billion to 28.3 billion.
of their after-tax income. In 1977, they saved 5.1 percent. The trend contrasts with the situation in other major industrial nations where savings are increasing.
Your number may be called to receive over $200^{00}$
ONE WAY people may be managing to pay their bills is by saving less. In 1987, the average U.S. household saved $329 per month.
ECONOMISTS HAVE mixed opinions about the rise in outstanding debt. Andrew F. Brimmer, a former member of the Federal Reserve Board, was quoted recently as saying, "The expansion of the bank is likely to source of the expansion of the economy."*
FOR ONLY $15.95
Board Chairman G. William Miller, on the other hand, has said the level of debt was a cause for concern because it could mean individuals will trim spending in the future, touching off "more widespread financial difficulties."
A real budget stretcher! CALL 841-751-
* Aflogs • Restaurant Meals
* Entertainment
* Service
TURN TO YOUR MONEY!
1024M2B24GASK BASED GUARANTEE IF NOT
10 DAY MONEY BACK GUARANTEE IF NOT COMPLETELY SATISFIED
"We're seeing more and more families who are beyond our help and need legal assistance," Gibson said. "They're really coming to us too late."
of monthly take-home pay. Average installment indebtedness, Glisson said, equals 17%.
The Virginia Inn
2907 West 6th Open Daily 6:30 a.m.-9 p.m.
The federal government, meanwhile, announced yesterday it had started an investigation to determine whether bill theft took place. The investigation which took effect March 20, prohibiting threats, harassing telephone calls and other abusive tactics. The Federal Trade Commission said it had received more than 1,000 bill collectors since the law took effect.
Cornucopia Breakfast Specials Mon.-Fri. 6:30 a.m.-11:00 a.m. Sat. till 9
The foundation counseling centers one debt management programs to help individuals pay off bills without running into legal troubles. The centers work out agreements with creditors who often allow borrowers extra time for payments.
1, 1 egg sunny, 2 pancakes (white or wholewheat),
coffee or juice ... $1.15
2. 2 eggs, as you like, hash browns or rice and grilled bread,
    coffee or juice ... $1.80
3. Bisquits and Gravy, coffee or juice .. $1.15
4. French toast (2 slices), coffee or juice . $1.50
5. Steak and two eggs as you like them, hash browns or rice, grilled toast .. $3.60
browns or rice, grilled toast
6. 2 egg omelet, choice of one ingredient (crab not included) rice
or hash browns and grilled bread
... $2.90
7. 2 pancakes with choice of fruit, coffee or juice . . . $1.45
Gibson said the biggest danger for the individual was "using credit as a supplement to income," buying something you need, or even where the money will come from to pay for it.
7. 2 pancakes with choice of fruit, coffee or juice . . . $1.45
8. 2 French toast with choice of fruit, coffee or juice . . $1.50
SUNGLASSES ARE OUR SPECIALTY!
HUGE SELECTIONS—GREAT PRICES
IN RECENT years, however, creditors have become less willing to wait for their money. Gibson said. They do not want to be paid more. They could ease by lending the money elsewhere.
- We have Sunglasses for:
YOU ALSO are in trouble if you find yourself dipping into savings to cover routine bills, if you charge everyday purchases like groceries, if you are always online and buy what you need and always pay only the minimum amount and if your family often argues about money.
★ Fashion
★ Skiing
- Everyday Wear
- Biking
Sports
- Motorcycling
- Boating
- Driving
- Golfing
- We have Sunglasses that are practically indestructible and scratch-resistant.
- Back-Packing
- We have Sunglasses that may well raise your G.P.A., make you popular, successful and rich!
- We have Sunglasses that adjust automatically or manually to light conditions.
- We have Sunglasses that are incredibly expensive!
- Please Come In and See What We Have
- We have Sunglasses that are incredibly cheap!
RAY BAN       AMERMATICS   ULTRA-SAFE
SUNSENORS    BRAUCH & LOMB     ROYAL
As a rule, monthly installment payments should not amount to more than 20 percent
Holiday Plaza 2104 W. 25
842-4499
8th ANNIVERSARY SALE
Regular $9.95
BOYE KNITTING NEEDLE SETS
On Sale $32.95
NEEDEL POINT TAPESTRY YARN Regular: 85 Now 60°
attached to the plate
BERELLA KNITTING YARN
TAXI. Annual
Regular $2.20
Now $1.90
NORWAY BULKY KNITTING YARN
85% ACRYLIC 15% Wool
Regular $2.60
Now $1.50
SILVERFLAKE BABY YARN Regular $1.00
Now .50*
"OLDIES BUT GOODIES" KNITTING PATTERNS .15*
FOLKWARE PATTERNS—entire stock 15% off
14" QUILT HOOPS Regular $3.25 Now $2.75
SELECTED NEEDLEPOINT KITS— 25-50% off
15 East 8th * 841-2656 Hours: 10.5 Mon.-Sat.
uLR B Dyns, nc.
"Your Complete Needlework Shop"
till 8 Thurs. eve.
STEP UP TO QUALITY CAR STEREO
BRIGHTER ROADS INC. is a totally new concept in car stereo.Mark Umholtz and Rod Karlin invite you to visit their new Car Entertainment Center and listen to Top Quality Equipment that is exclusive to the Lawrence area. Take a few minutes . . .
your ears will thank you!
1420 W. 23rd next to Taco Bell
843-9030