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More Americans are struggling with debt and past-due payments

On Behalf of | Jun 3, 2020 | Personal Bankruptcy

This is a difficult time for many Americans, and many are dealing with serious financial setbacks such as job loss or a reduction in income. As a result, it is difficult for some Pennsylvania families to make payments on basic monthly expenses, such as their home mortgage or credit card bills. Debt and past-due payments are becoming a serious issue as more consumers fall behind each month.

Statistics indicate many credit card holders are struggling to keep up with their payments from month to month. The percentage of credit card accounts that have entered financial hardship, a designation indicating that the cardholder cannot pay, has increased by 3.2% in the month of April alone. This is a startling increase of about 14.7 million accounts.

Statistics also indicate the same problem happening with auto loans as well. Around three million accounts entered hardship in April, which is an increase of about 3.5%. Around 5% of mortgage accounts are also in hardship, which means around 2.7 million homeowners are struggling to keep up with their house payments. This is not just in Pennsylvania. These numbers represent what is happening across the country.

Debt and past-due payments can leave consumers in a difficult position that may feel impossible. This is why it may be helpful to speak with a legal professional regarding the benefits of consumer bankruptcy. This process can allow someone to discharge certain balances, halt debt collection efforts and lay the foundation for a stronger financial future. An assessment of the individual financial situation can reveal which chapter of bankruptcy is most beneficial.