U.S. Household Debt Hits Record High as Bankruptcy Filings Rise — What It Means for You

A Growing Financial Strain for Many Families

Debt in America has reached an all-time high. According to the Federal Reserve, U.S. household debt has now climbed past $18.6 trillion. That figure includes credit cards, auto loans, student loans, and mortgages — and the cost of carrying those debts keeps climbing as interest rates stay high.

At the same time, personal bankruptcy filings are up across the country. More families are finding that they simply can’t keep up with rising bills, no matter how hard they try. Here in Alabama and Mississippi, we talk to people every day who are juggling credit cards, car notes, and medical bills and wondering how they got here.

Why It’s Becoming Harder to Stay Ahead

For most people, financial trouble doesn’t happen all at once. It builds slowly — a missed payment here, an unexpected expense there — until it feels like there’s no way out.

Right now, several factors are making things especially tough:

• High interest rates mean even minimum payments stretch budgets thin.

• Inflation continues to raise the cost of everyday essentials.

• Medical debt still lingers long after an illness or surgery.

• Student loan payments have resumed, hitting younger borrowers the hardest.

These pressures are adding up, and many Americans are realizing that their paychecks just don’t go as far as they used to.

Why More People Are Turning to Bankruptcy

The word “bankruptcy” can sound scary, but it’s simply a legal tool — one that exists to give honest people a fair chance to start over. When handled properly, it’s often the most responsible way to deal with unmanageable debt.

Chapter 7 allows you to wipe out most unsecured debts and move forward debt-free.
Chapter 13 lets you reorganize what you owe and make one affordable monthly payment while keeping your home, car, and other property.

At Bond & Botes, we’ve been helping families take advantage of these protections for more than 35 years. We’ve seen time and again that bankruptcy doesn’t ruin lives — it helps rebuild them.

When It’s Time to Ask for Help

If you’re constantly behind on payments or getting calls from collectors, that’s a sign it’s time to talk to someone. A consultation with an experienced bankruptcy attorney can help you:

• Understand your rights and what creditors can and cannot do.

• Protect your income and assets from garnishment or repossession.

• Compare all your options, including non-bankruptcy debt relief.

• Create a plan that restores peace of mind and financial stability.

At Bond & Botes Law Offices, our attorneys meet clients across Alabama and Mississippi by phone, video, or in person. Every conversation is confidential, and there’s never a charge for the initial consultation.

A Fresh Start Is Closer Than You Think

Financial problems can cause more than just stress — they affect your sleep, your health, and even your relationships. But the sooner you get advice, the more options you’ll have. Bankruptcy isn’t the end of the road; it’s often the first real step toward rebuilding.

You deserve a chance to breathe again. We’re here to help you take that step.

Contact the Bond & Botes Law Offices

Phone: 877-581-3396
Email: Click Here to email us through our website
Website: https://www.bondnbotes.com/