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Uncontrollable Debt and Stress

July 26, 2019

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Uncontrollable Debt and Stress

July 26, 2019

 

I have been a practicing bankruptcy attorney since 2004, and all during that time span, I have seen first hand, the physical and mental stress that uncontrollable debt can cause on a individual.    From the initial consultation meeting, my client's level of physical and mental stress is clearly visible and at its highest point.   Money is a huge reason for stress, and a simple Google search confirms what I already have experienced through my years as a practicing bankruptcy attorney.  

 

Credit card debt in the U.S. as reported by the Federal Reserve had eclipsed a trillion dollars in March of 2018, and 43% of the people in the U.S. spend more money each month than they make, which obviously creates a gap and credit cards fill that shortfall.   More stunning is the fact as reported by the Federal Reserve Bank of New York that for the 19th consecutive quarter household debt has risen, so for example the 4 quarter ending in 2018 was a 0.2% increase in household debt, but a jump of 0.9% increase of household debt for the first quarter of the 2019 year.

 

Mortgage debt balance increases for first quarter 2019 reported a 1.3% jump and auto loan balances increased by 0.5%, student loan balances by 2.0% during that same period.   If you put the mortgage balance increases in dollars from fourth quarter ending 2018 to first quarter ending 2019 that amounts to a $120 billion dollar increase.  

 

The consumer auto loan balances reflected from the 2019 first quarter ending as reported by the Federal Reserve Bank of New York came in at an incredible figure of $6 billion dollars and Student loan balances during that same quarter revealed an increase of $29 billion dollars. 

 

What does this do to the psyche of families who are faced with daunting debt?  What does this do to one's health having to constantly deal with money matters?  On a survey conducted in 2018 by Northwestern Mutual, bore out data  indicating that 44% surveyed indicated money was their major stress over personal relationships at 25% and their work at 18%.  More importantly, 28% surveyed stated that they dealt with depression from financial anxiety on a monthly basis. From that same study, financial distress impacted relationships by 41% and 1 in 5 (19%) American couples disagree on a monthly basis on money related matters.

 

I understand your concerns on how filing a bankruptcy may impact your credit score, or your ability to get loans in the future, or how you may feel people will perceive those who seek bankruptcy relief.  I have sat across many a client and  had heard those same concerns uttered from their mouths.  But, if your overwhelmed with uncontrollable debt and your health or your relationship is taking a hit as a result that is why bankruptcy laws were created.  

 

My credo is to never look down on another person unless I'm looking down to help them up, and that's exactly what bankruptcy laws were intended to do, to not look down on you, but to help you up!   If you're considering bankruptcy relief, call my office at 989-891-9780 and let's talk about your financial situation.  I will sit down with you and discuss all your options because I believe people can be helped with bankruptcy.     

 

 

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