An article this past weekend in the New York Post discussed the massive amount of debt currently owed by Americans. We are headed to debt levels which may top $12.68 trillion dollars and which have not been seen since 2008 according to the Federal Reserve. The article states that the average American faces $37,000 in debt, not even including their mortgages, which could easily add another zero to that number. 1 in 10 people are looking at $100,000 in debt excluding their mortgage.
Unable to Pay Off Debt
Americans struggle each month to pay down debt with 20 percent now saying that they are spending half or more of their monthly income to deal with their debt. This is from a study by Northwestern Mutual of 2700 people. The study also reveals that 1 in 10 people believe they will die in debt. Yet, we still keep spending. Financial experts state that it is a big mistake trying to build financial security while burdened with debt. It is no different than trying to run with weights around your ankles and with dumbbells in your hands. Most people realize this but the appeal of ‘I’ve got to have it now’ is too much. Many of my clients have told me how easy it was to get in to debt, but very hard to get out. The stress of debt also affects their health and relationships with spouses and other family members. Millennials may be the worst when dealing with debt according to the article. Only 22 percent pay as much as possible on their debt in comparison to 35 percent of Americans overall. Approximately one third of millennials admit to frivolous spending.
The amount of debt owed by our clients over the last 20 plus years has varied from what many may see as not very much to a substantial amount. The important point is to remember that we can help you no matter the amount. What seems to be not much to one person is a tremendous amount to another. Whether it is tax debt, credit cards, medical bills, etc., we have dealt with it before. Do not let your creditors or third party collectors intimidate you from seeking help.
At Bond and Botes, we help people deal with debt that has become overwhelming. If you are experiencing financial difficulties that seem to be more than you can handle on your own, the attorneys at Bond and Botes have been providing wise counsel to clients for over 20 years and want to help guide good people through trying times. We have always offered a free initial consultation with an experienced attorney who can answer your questions about chapter 7 bankruptcy or chapter 13 debt consolidation.