The strain of 2020 has resulted in the loss of unemployment benefits, the loss of jobs, the loss of bonuses, and the loss of businesses. Living on credit day-to-day has now become a reality for millions of Americans. Total consumer debt recently hit just below $4.2 trillion.
Americans are using most if not all of their disposable income to pay on non-mortgage debts like car, truck and boat loans, credit card accounts, and personal loans.
Americans have been amassing large amounts of debt for years. American consumers are borrowing more money more often, enticed by zero or low interest rates on vehicles and the never ending offers from credit card companies. Even though the stock market has been rising to all-time records and there are talks of more stimulus money coming, the fact is that middle class incomes have been stagnant for years. Many people are living paycheck-to-paycheck. The global pandemic has caused job insecurity. Americans are stressed out financially.Now is a good time to consult an attorney about financial stress and debt management options.
It is better to consult an attorney early and go over your options than to wait until it is too late. Here are some factors that will help you decide if now is the time to start thinking what to do:- Have you been only making minimum monthly payments?
- Are you paying high interest rates on your credits cards?
- How much do you owe in relation to your monthly income?
- Are you behind on your mortgage or rent?
- Are any accounts in collection?
- Have you been able to save for retirement?
- Are you on an installment plan for tax debt?