Many times over the years, I’ve had to rely on my tax refund to pull me out of a jam. It was usually property taxes or HOA dues that needed to be paid and I’d have to wait on the IRS refund to pay that bill. I’ve learned over time not to rely on the IRS to save me.
We are now in full swing Christmas mode with movies and music. Christmas is such a wonderful and joyous season of the year, and also the most expensive.
It is reported that federal student loans have had continuous, cumulative growth since the Great Recession ended in 2009. These loans have increased by approximately 157 percent over these years. That is a tremendous increase compared to the 52 percent that automobile loan debts have increased in the same time period. Student loans are the second largest consumer debt in the U.S. economy after mortgages.
According to the news, consumer debt in the United States has been steadily growing since 2012 and is expected to top $4 trillion by the end of this year. Debts on auto loans and credit cards climb by approximately 7 percent annually. Income levels, on the other hand, have been growing at a slower rate of only 4 to 5 percent annually. We are spending more than we make, which leads to increased debt that will eventually fall into default.
Since 1990, there has been a dramatic increase in the rate at which older Americans file bankruptcy. One study indicates that the percentage of elderly filers has gone from 2.1 percent in 1991 to 12.2 percent in 2018.
When you turn retirement age in America, you generally look at slowing down a bit, perhaps stopping work and enjoying some time with the grandkids. Unfortunately, things change quickly. Sickness and hospital stays can lead to mounting medical bills that become unbearable. This sad situation often leads to retired individuals returning back to the work force in order to make years of payments to doctors, hospitals and other medical services. Today, I’d like to share with you some helpful tips on how you can prepare for these medical expenses in the future.
As a bankruptcy attorney, I am often asked by prospective clients if they should wait to file bankruptcy. Some of them believe that the job market may soon turn around so they can find better employment. Others want to wait and pay what they can by living off their life savings. Still others just don’t want to do it until their backs are up against the wall. If you are currently struggling with mounting debt, you should ask yourself: Why wait?
Have you ever taken out a payday loan? People often go in there thinking that it will be just a one-time thing, but it never is. If you haven’t taken out this loan before, don’t do it. If you have, you know how harsh their repayment terms are and that it is almost impossible to pay the loan off. Their interest rates are incredibly high and their collection strategy will take all of your money leaving nothing for your rent or food. It is a never-ending cycle.