“Despite recognizing that debt is dangerous waters, Americans are jumping in with both feet and struggling to stay afloat.”
That is what Emily Holbrook, director of planning for Northwestern Mutual, told CNBC recently.
We hear about younger Americans being drowned in students loans all the time. It is true, over 44 million Americans have student loans. Their average debt is around $33,000.
Still, that is not the main source of debt for those between the ages of 25 and 34.
So, what is it?
Credit card debt.
Experts cite the need to keep up with increasing expenses that they face as they grow older. Holbrook said that, even though their salaries tend to increase, their disposable income shrinks because this age group is facing expenses that older generations have not had to face.
- High student loans
- Self-funded retirement savings
- High home prices
Right now, their income may be able to keep up with the debt they are accumulating, but what happens if the economy takes another downward turn?
What if the industry they work in takes a hit because of a trade war?
Utah has around 376 bankruptcy filings per 100,000 people, putting it sixth in the country, but as our economy continues to undergo changes, that number may increase.
Bankruptcy is sometimes seen as a failure, but we do not want you to look at it that way. Chapter 7 and chapter 13 bankruptcy were created to help people get a chance to get their debt under control and get their lives back.
We have talked before about how putting off bankruptcy can be damaging. The period of time before a person files is often called the “sweatbox” because of how much stress people are under during that period. People often forego necessities, even meals, while trying to stay afloat.
We want you to know that the “sweatbox” is not a place we want you to be. It can cause incredible stress that will affect all areas of your life. Debt can become overwhelming, especially when you have to worry about keeping a roof over your family’s head and food on the table.
Often, not being able to pay your debt is not your fault.
What You Can Do
It is time to regain control of your life. With experienced legal help, you can start the bankruptcy process. We will get to work for you, figuring out which type of bankruptcy will work best for you and your family. We will get your debt restructured and make sure you keep the assets you need the most for survival – your home, vehicles, and even your retirement savings.
Why go on one minute longer this way when you can take advantage of what the law has to offer?