The shame of debt can blind us into believing that we have failed, and also that we are alone in having done so. If there is a silver lining in this strange and terrifying time, it’s that all Americans are in this together. If you’re considering filing bankruptcy during coronavirus-triggered financial hardships, rest assured you’re not alone. Nobody should ever feel like a failure for struggling with debt or filing for bankruptcy, even under more normal circumstances. I hope that recent figures of Americans filing for unemployment can remind you that countless other people are right there with you.
22 Million Americans Have Filed for Unemployment
The coronavirus has impacted nearly all aspects of everyday life in America. It has touched every corner of our country. Over the past month, as schools and businesses have shut their doors and moved online, record numbers of Americans are filing for unemployment. As of last week, more than 22 million Americans applied for unemployment benefits. That’s nearly 13.5% of the workforce.
Many Households Struggled Long Before Coronavirus
If your financial issues started long before the pandemic, you aren’t alone in that either. Most households don’t have a safety net for this kind of crisis. 80% of Americans live paycheck to paycheck. Many feel unprepared for even a $400 emergency.
Bloomberg reports that consumer debt rose significantly in February, right before the pandemic took our nation by storm. There was a $22.3 billion increase in total credit from January.
There’s no need to feel guilty
Many people who come into my office feel guilty about their own actions, in addition to the general stigma of bankruptcy. They think that carrying debt, specifically credit card debt, is a reflection of poor decisions, or of little to no impulse control.
I want to remind anyone reading this that debt is so much more than your purchases. Late fees and interest all compound. They make up a significant part of your debt. The purchases themselves may have been from years ago. Again, credit card debt is not a sign of reckless spending, nor is it a sign of weakness.
Let us help you free yourself from debt
We’ve served Memphis for decades. It’s a joy to watch countless families rebuild and go on to enjoy a life of true financial freedom.
We’re always here to help, and we know our commitment to our clients matters now more than ever. Our hours are the same. While we’re working remotely, you can still file for bankruptcy.
Our support doesn’t end once your bankruptcy is settled. We offer a 14-week program called “7 Steps to a 720” at no cost to clients. It will teach you:
- how to rebuild your credit the right way
- why most credit scores are wrong
- which credit cards actually hurt your credit score
- how to stop lenders that report the wrong information
- how to re-establish your credit after a bankruptcy, foreclosure or short sale
Give us a call today at (901) 327-2100 or contact us online to discuss your options.