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Student Loans, Auto, Credit Card Debts Continue to Rise in the US

student loans
  • Aug 3 2018

As consumer debt continues to surge, you may be taking a look at your own finances and wondering how to get back on track, especially if creditors and debt collectors are calling aggressively about missed payments. Today the average household is responsible for the usual debts, from the mortgage to the car payment—but in between, massive student loans and credit card debt are taking a substantial slice out of consumer paychecks too.

Recent numbers show a staggering upward progression in consumer debt since 2008—as high as 45 percent. While credit card debt is at historical highs and auto loan debt creeps up slowly, the student loan crisis often overshadows other financial concerns nationwide.

“Student loans surged 5.6% in Q4 year-over-year,” states a recent news article from Business Insider. “This seems like a shocking increase, but the year-over-year increases in Q3 and Q4 were the only such increases below 6% in this data series. Between 2007 – as far back as year-over-year comparisons are possible in this data series – and Q3 2012, the year-over-year increases ranged from 11% to 15%.”

“And there was no dip in student-loan balances during the Financial Crisis; in fact, those were the years with the steepest growth rates. From Q1 2008 to Q4 2017, student loan balances soared 141%, from $619.3 billion to $1.49 trillion, multiplying by 2.4 times over those ten years.”

You may be concerned about payments on all your debts currently if you have an experienced a setback such as unemployment or an illness. Late payments may be accompanied by such a flurry of fees and escalating monthly payments that you find yourself unable to catch up, drowning in delinquency. For most consumers in such a predicament, what is needed is a time period to stabilize. Consult with an experienced debt protection attorney from Fitzgerald & Campbell, APLC to review your options. Debt settlement may be a good choice for you if you can pay off balances in highly discounted but lump sums. Bankruptcy may be an even better option, and especially if you are eligible to file for Chapter 7.

If you are already in the middle of being sued by a collections agency, however, it is very important to act quickly. While the temptation to procrastinate or just forget about such nastiness is probably hard to resist, if you take the reins before a default judgment is granted, you will be in much better shape legally and financially. While a collections lawsuit may be easily defeated, that is not always the case with judgments—and they can result in very uncomfortable consequences such as the garnishment of your wages, freezing of bank accounts, and seizing of property.

Let us review your current situation and discuss your options with you, whether that means a negotiated settlement, fighting a judgment, filing for bankruptcy, or more. Our attorneys have decades of experience representing clients in all types of consumer rights matters, and we are here to help you! Call us today for a free consultation at (855) 709-5788 or email us at info@debtorprotectors.com.

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Posted in: Auto Loan Debt, Credit Card Debt, Student Loan Debt