Although none of us could have expected the serious nature of a viral pandemic sweeping the nation, the writing was on the wall very quickly after restrictions, shutdowns, and even lockdowns became a reality in 2020. As millions became sick and hundreds of thousands of Americans died, unemployment became a huge issue for many, along with loss of hours—or moving from the office to the home as a temporary or perhaps even permanent workplace with challenges in childcare also.
It’s hard to find someone who was not affected, but recent news now shows that lower-income households, many of which were already struggling financially, took on more debt. In many cases that just could not be avoided. As jobs were lost, credit cards or even personal loans may have been all that was left to survive. Unfortunately, with unemployment running rampant, and all the usual bills left to pay, many Americans were left in a state of true economic depression, wondering where to turn. Even with bill collectors being quieted and moratoriums on evictions, there were still huge concerns regarding how to pay for the essentials in life without an income.
Student loans became a huge concern for millions of Americans too. Although the federal government offered generous, extended deferments for those whose loans were actually owned by the government (meaning that some federal borrowers were out of luck too), private student loan borrowers were left in the cold for the most part—many of whom were responsible for extremely large sums of money to be paid to private loan servicers every month.
“Lower-income adults, as well as Hispanic and Asian Americans and adults younger than 30, are among the most likely to say they or someone in their household has lost a job or taken a pay cut since the outbreak began in February 2020. Among those who’ve had these experiences, lower-income and Black adults are particularly likely to say they have taken on debt or put off paying their bills in order to cover lost wages or salary,” states information from Pew Research Center.
For individuals who had to take on more debt, items like credit cards became a temporary form of income—but a dangerous one too, because credit gets maxed out very fast and then creditors are waiting at the other end to get paid. When survival mode is part of the equation, however, there simply may not be any other choices.
If you are now concerned about delinquencies or being sued, contact an experienced attorney from Fitzgerald & Campbell, APLC as soon as possible to discuss your options for the future. This is very important to do in the short-term, as waiting could cause major problems for the long-term, like wage garnishments, and levying on checking accounts and even personal assets.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at info@debtorprotectors.com.