Some people say that death and change are the only guarantees in life, but you may have noticed one more -- debt. No one really tries to actively go into debt, but it seems to be one of those unavoidable aspects of life.
Whether you take out loans to get an education or have a mortgage on your home, you know that debt can feel overwhelming. In many cases, it truly is. If you are anything like other debtors in Texas, repaying all of your debt might not be realistic.
How many Americans live with debt?
A study from the Pew Charitable Trusts discovered that 80 percent of people in America have at least one form of debt. Of those who responded to the survey used for the study, 70 percent stated that debt is a necessary part of life, even though they wished it were not.
Those survey respondents might not have been far from the truth. Nationwide, the median income dropped 13 percent between 2004 and 2014. Over that same period, expenditures went up approximately 14 percent.
Student loans and credit card debt -- a troublesome combination
Student loans hit young borrowers especially hard since you cannot discharge them during bankruptcy. If you graduated in 2016, you probably left school owing around $37,000. Nationwide, borrowers owe a collective $1.34 trillion, and not everyone can pay it back. Around 11.2 percent of student loans are no less than 90 days past due or in default.
Credit card debt is not looking much better. In 2017's second quarter, nationwide credit card debt averages rose about $20 billion to hit a total of $784 billion. This breaks down to an average of $4,000 per credit card holder, with the average household owing a little over $5,700.
There is hope with bankruptcy
Popular media and societal expectations have done a great job at stigmatizing a process that is designed to help you. You should not have to live for decades toiling under the weight of debt that you can never repay.
Bankruptcy provides a proven path to a better financial future, and you while you might feel understandably nervous about the process, do not let it stop you from getting the help you need. However, since bankruptcy can be complicated, advice from a Texas attorney who is experienced in the matter can help ensure the most successful filing possible.