Consumers can be forced into bankruptcy for a host of different reasons. Household debt being one. In 2017, household debt hit a new high of over 12 trillion dollars, steadily climbing since 2008. So, what exactly contributes to household debt?
There are several categories of household debt; some have more increases than others. Mortgages, credit cards, student loans and auto loans make up the majority. Banks are extending more debt to households through extensions in credit.
Bankruptcy can provide tremendous relief and opportunity to start over and Hines Law Bankruptcy Firm serving the greater Boston area can help.
Mortgage balances make up more than half of household debt. Creditors use credit scores to determine how likely you are to repay your debt and decide whether or not to offer you a loan. A high mortgage payment can be a burden. Although a high credit score may enable you to get a mortgage, other factors may affect if you are able to pay it.
Credit card debt can get out of control fast. Making payments on time is crucial, especially for your credit score. Although it accounts for the least amount of household debt, it can climb quickly if you are not careful. It’s important to spend responsibly and not increase your household debt to staggering limits.
Student loans are a huge contributor to household debt and are typically not forgiven in bankruptcy. They are non-dischargeable and can be quite a financial burden. Auto loans also fall into the household debt category. They have reached a record high. Although Americans are increasing their household debt, they are also learning how to pay it back. 2017 had a decrease in delinquencies.
If you are overwhelmed with household debt, Hines Law can help. Our Full-Service Bankruptcy Legal Firm handles all types of personal debt relief matters. Throughout the years, we have been privileged to serve clients in Framingham, Watertown, Westborough, Worcester, Leominster, and beyond.
Our expertise includes Chapter 7 and Chapter 13 filing as well as assisting our clients implement a plan to rebuild their future. Experience and extensive knowledge in bankruptcy is at the core of our practice and our commitment is to safeguard your interests and your future by providing the right solution for your bankruptcy case.
Call us today for a Free consult!