Household Debt Hits Another High in the US
Debt continues to grow around the nation, along with household debt, causing unease among financial analysts who warn that another economic bubble may soon burst. This concern is centered around growing credit card balances that are accompanied by lenders continuing to extend credit. While it may be more of a trap for consumers than anything else right now, currently so many defaults will begin occurring that credit card companies will tighten up significantly—and many who must rely on credit cards as temporary income may be left without that safety net.
Today, more historical highs are being met—and not particularly good ones on the economic front for consumers. Recent news points out that while mortgage debt may be declining, credit card users are getting maxed out, along with auto owners and student loan borrowers. As consumer debt rises, data shows that consumer confidence is weakening.
“Our published research in behavioral economics found that action speaks sooner than words,” Dan Geller, a behavioral economist at the San Francisco research firm Analyticom stated in a recent interview. “In December of 2018, people started cutting back on spending, which reduced retail sales by 1.2%. Soon, other economic indicators will be slowing down as well.”
Part of the problem for consumers who run into financial distress is that other events factor in like a car or motorcycle accident that may leave them with devastating injuries, unable to work, and unable to pay bills. Divorce and student loan debt may add insult to injury too. Ultimately, this means that creditors and debt collections agencies begin screaming for their money—and sometimes quite literally, depending on the level of aggression. As household debt rises and so do delinquencies, this leads to the inevitability of more collections lawsuits and default judgments.
If you have been served with a lawsuit, do not push it aside like so many consumers do. Without a reply to the collection lawsuit or any presence in court by you or an attorney, you will have further complications once a default judgment is granted against you. This imbues a creditor or debt collections agency with new power to see the debt satisfied—meaning they can have your pay garnished, or if that is not enough to pay off the loan, they can also have your property seized and sold off at public auction. Financial accounts may be frozen also until the debt is satisfied.
If you are concerned about impending creditor lawsuits or fighting a default judgment, consult with an experienced law firm like Fitzgerald & Campbell, APLC as soon as possible. A solution can be found to help you through any of these issues, even if a judgment has already been granted.
Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include collection lawsuits, default judgments, and more. Let us review your case and discuss what would work best for you. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at email@example.com.
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