Emergencies and daily expenses can drive people into debt
On Behalf of O’Brien Law Firm, LLC
Posted on: September 18, 2019
A medical emergency or a costly car repair can begin a Mississippi resident’s slide into debt. A survey from CreditCards.com showed that various emergencies, medical bills, auto repairs and daily expenses resulted in one-third of respondents leaning on their credit cards too much. On the whole, the nation has accumulated over $1 trillion in credit card debts according to WalletHub.
In the second quarter of 2019, consumers added another $35.6 billion to their card balances. Analysts at WalletHub expect consumers to incur a total of $70 billion in extra credit card debt by the end of the year.
The financial pressures evident in these figures have resulted in long-term debt for many people. According to CreditCards.com, over one-third of people carrying credit card balances have been doing so for a minimum of two years. Many of them owe more on their cards than they possess in savings.
Sometimes individuals manage to pay their credit card bills by reducing expenses and reforming their spending habits. In some cases, however, financial difficulties prove overwhelming. A person unable to increase income or reduce expenses might want legal advice about debt management. An attorney might provide information that might allow a client to renegotiate a loan payment or settle an outstanding debt for a lower amount. An attorney’s intervention might gain the client more time to pay a debt. This might prevent repossession or wage garnishment. Chapter 7 bankruptcy might also be a viable option. This involves the liquidation of the debtor’s non-exempt assets with the proceeds being used to pay off creditors. The remaining balance of most unsecured obligations would then generally be discharged.