Personal debt continues to be a struggle for many Americans, including thousands here in Texas. According to data recently gathered by Northwestern Mutual, the average American had more than $38,000 in debt in 2018. This amount did not include home mortgages. The research also found that individuals are two-times more likely to thousands, perhaps even tens of thousands, of dollars in debt than they do in savings. Only 23% of Americans didn't carry any debt last year.
You may not know much about bankruptcy law. What you do know is that you're facing a serious financial crisis. Your credit card balance is sky high, and you have no way to pay it off. You have medical bills because of a loved one's recent surgery, and your boss just informed you that they are cutting costs and your services are no longer needed.
Student loans have left many Texans struggling to make ends meet. With college costing tens of thousands of dollars, many consider whether it's even worth it. But those who do choose to take on debt to obtain an education can wind up paying on those loans for a significant period of time, even if they are able to obtain good jobs upon graduation.
Many Texans work hard to keep a roof over their head. Yet, it doesn't take much for the financial strains to make it challenging to pay bills to maintain that housing. Although Texans who rent can always finish up their lease and move to a cheaper living arrangement, homeowners can't simply walk away from their mortgage without serious financial consequences. As a result, many Texans who fall on hard financial times find themselves struggling to stay current on their mortgage. When they fall several months behind on their payment, they may face foreclosure.
Recently, this blog discussed a survey regarding credit card debt. It found that about half of all Americans carry a credit card balance from month-to-month. There are many reasons for this, including the sudden onset of a medical condition and the loss of a job. Regardless of the specific circumstances at hand, many Texans who turn to credit cards do so because they are in need of financial resources to cover debts that can't afford. While many make a zealous effort to pay these debts off, the sad reality is that it is often a debt spiral that can quickly get out of hand.