When you have a lot of debts to handle, managing the monthly finances can feel like a giant shell game — and there’s never enough money to go around. You’re definitely not alone.
In 2020, the U.S. consumer debt balance topped $800 billion, which was a 6% increase over 2019 alone. A recent CNBC news report indicates that if you divide all of the consumer debt out there, every adult and child in this country would owe $90,460. It’s no wonder that experts think that a new wave of bankruptcies may be coming.
Bankruptcies were steadily falling — but that may not last
Over the last few years, bankruptcies declined — but that decline shouldn’t deceive anybody into thinking that American consumers aren’t struggling. Eviction moratoriums, foreclosure freezes, utility shut-off holds and federal financial relief efforts kept a lot of people afloat.
Those have now all largely come to a halt, and people are starting to realize that they simply can’t keep shuffling money from one bill to another any longer. Further, many people have been forced out of work either due to early retirement, illness or because they needed to become the family caregiver when the kids were no longer in school.
This has all set the stage for a debt reckoning that’s going to eventually play out in bankruptcy courts everywhere. That makes it wise to plan now.
Your debts aren’t your fault. While anybody can (and almost everybody does) make a financial mistake or two, the reality is that the vast majority of people who are struggling with massive debts couldn’t have prevented their situation. You may find it worthwhile to learn more about your bankruptcy options. Filing a bankruptcy petition immediately stops garnishments, repossessions, and foreclosures. Talk to an attorney about your options.