The Problem Of Personal Debt In The United States

Personal debt is a massive problem in the United States. You can look at overall credit card debt, the amount of personal debt that’s increased since COVID, and the number of evictions that have happened since. But even though recent economic factors have caused personal debt to increase, it has always been a problem in this country.

Without getting too political… The more we see the middle class shrinking and the rich accumulating more wealth, the more people need bankruptcy relief. There was a time when clients making a certain amount of money had an income-to-expense ratio that meant they couldn’t qualify for a Chapter 7 bankruptcy. (In most cases, those people wouldn’t even need to file Chapter 7.)

Today, I’ve seen more and more people who are making the same kind of money that used to mean you didn’t have to go through bankruptcy – but they can’t get by because everything is getting so expensive.

Car payments, property taxes, property insurance, rent, and utility bills – the price of everything is skyrocketing. There’s nowhere to run or hide from all this for any of us. Some of us are lucky, but for most of us, personal debt is becoming a huge issue because credit cards are becoming the only way for us to survive.

The unfortunate truth is that anybody who relies on credit cards may end up needing to file for bankruptcy because it’s not their money that they’re spending. Even I’m not even immune to this; we all use credit cards. It’s just a matter of how often you use credit and whether you can afford to make the payments.

Most Common Debts Americans Have Right Now

Without credit card debt, bankruptcy wouldn’t be a popular area of law – it’s likely to always be the most common debt Americans have. However, medical debt tends to come in at a close second.

This is something that has always bothered me. From the standpoint of what I believe is right, it’s horrible what we do to people who get sick in this country. I see plenty of clients who would never need to file bankruptcy… until they got cancer, had a heart attack, or were involved in a car accident.

For most people, it’s impossible to pay back the kind of money that you end up owing for some medical treatments. I’ve seen hundreds of thousands of dollars owed, but even if the cost winds up being “only” $50,000, it can create a financial hole that’s impossible to get out of on your own.

Unfortunately, most of us have health insurance that’s not excellent – but even “good” insurance can leave you in a bad spot if you ever need specific medical care.

It’s one thing if you only need to go to the doctor’s office a few times a year, but what if you need surgery, chemotherapy, or dialysis? In that case, chances are, the medical bills will put you in a horrible spot where you’ll have to come to see an attorney like me for help.

With the guidance of a skilled attorney for Bankruptcy Law Cases In Florida, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on The Problem Of Personal Debt In The United States, an initial consultation is your next best step. Get the information and legal answers you seek today by calling (407) 305-5599.