Inflation Leads to Debt For Already Cash-Strapped Americans
After the last two years, so many of us need a break. As many of us in Memphis have struggled to protect our physical health, we’ve been pushed to the limits in our financial health as well. Now, debt from inflation threatens to push us even further.
As a Memphis bankruptcy attorney, I know how these economic highs and lows can affect your mental health and keep you from enjoying your life. Here are some things I’ve noticed as inflation challenges us all.
Cutting Back Due to Inflation
Most of us are finding ways to cut back at the moment. All across Memphis, I’ve heard from people who are spending less on optional groceries, gas, and clothing in order to pay for all the things that aren’t optional.
But there’s a limit to how much this can solve the problem. People who buy gas to get to work simply don’t have a choice but to spend astronomical amounts at the pump. In fact, in some parts of the country right now, gas prices per gallon are higher than the minimum wage. So some workers are paying more to get to their job than they’ll make working there!
That’s an impossible situation. And as a result, many Memphians are forced into another option: taking on debt.
Taking on Debt to Make Ends Meet
People outside my line of work may not realize this, but bankruptcy rates have dropped drastically during the pandemic. This is due to a variety of reasons:
- Government subsidies
- Moratoriums on evictions and foreclosure
- Creditors pausing car repossessions
- Changes in family spending
- A robust job market
Whatever the reasons for each individual, it shows a lot of folks have been able to stay above water during these difficult times.
But now inflation might be the last straw.
If you find yourself putting more and more on credit in order to pay for your basic needs, you certainly aren’t alone. As bankruptcies fell, consumer credit actually rose to near an all-time high.
And to make matters worse, interest rates and annual fees are rising to an all-time high as well.
This is simply not sustainable.
Bankruptcy to Get Rid of Inflation-Related Debt
With all these rising costs, maybe you have so much debt that you can’t possibly pay it all back, or you feel like you’re just treading water forever.
In that situation, you might want to consider bankruptcy.
Bankruptcy helps you get out of debt by either clearing all of your debts altogether or creating a payment plan you can actually afford.
For anyone with debt you can’t pay back, it’s a lifeline. A chance for a fresh start.
If you’re interested in learning more about what bankruptcy can do for you, contact me today. The conversation is totally free. We can help you figure out whether you qualify and, if so, which chapter might be right for you.
Don’t let inflation steal any more from you than it already has. Just give us a call at 901-327-2100 or fill out the form below.