Debt has more American down in the dumps than ever before.
According to a recent article in the Washington Post, more Americans are feeling pessimistic about their debt situation. This year, nearly 20% of consumers with loans and credit cards think they will never be able to finish paying off the debt. This is double the nine percent who felt that way in 2013.
A credit company pulled more than a thousand people in early December and asked them what age they expected to be when they would be debt free, after factoring all of their consumer debt including charge cards, car loans, student loans and mortgages. On average, the people that responded said that they did not believe that they would be done paying off all of those loans and be debt free until they turned 53 years of age. In addition, when you receive a charge card statement and you look at the small box that indicates how much you’ll be paying back and what length of time it will take if you only pay the minimal payment, it can take 25 to 30 years to pay back a charge card if you just pay the minimum payment each month and do not use the card for any additional purchases or cash advances in the future. In addition, you will be paying back at least three or four times the amount that you borrowed.
If you are struggling with debt, and especially if your debts are behind and the companies are adding additional fees, interest, late charges and hurting your credit, you could consider filing a Chapter 7 bankruptcy to eliminate some of this debt. You could also file a Chapter 13 bankruptcy , which will give you the opportunity to file a plan or repayment that can extend as long as five years.
This time of year, struggling with debt can be very discouraging and very depressing. Please do not hesitate to contact Steidl and Steinberg to review all of your options on an individual basis. The consultation is free so you have nothing to lose except your debt.