Are Bankruptcies On The Rise?
No one wants to enter into the nightmare that is bankruptcy and yet many find themselves seeking protection under bankruptcy laws. The biggest factor that has given rise to bankruptcy is the easy availability of credit. Credit card use has skyrocketed in the last two decades and people have started living beyond their means. Paying for current purchases with future earnings has sunk people in deep debt. Other than credit cards, mortgages are also available with lax policies. People are making mortgage payments that are well above their range of affordability. Some people who were able to afford large mortgage payments became victims of the last recession and now their income has dropped since they first bought the house. Other homeowners assumed that the adjustable rate mortgages would allow them to refinance before the rates went up but they couldn’t. This has led to many people depending on credit cards, because most of their income goes towards mortgage payments, which means all other living expenses are paid with plastic. Lastly, people get in debt because of poor management of personal finances. Budgeting and the concept of saving for a rainy day have become non-existent. Maintaining a materialistic life of expensive brands is what we now understand and staying out of debt isn’t a priority anymore. Some people who are struggling with debt don’t realize they are in trouble or they just avoid seeking help. In the end, there is always another card that can be swiped to make monthly payments. Instead of seeking help, people keep sinking into debt deeper and deeper, to a point where they have to declare bankruptcy. So, are bankruptcies on the rise? Yes, definitely and it seems it’s becoming inevitable. If you are struggling with credit card debt and need help, contact Oswalt Law Group today for a free consultation.