Inflation and the impact on your debt | On your debt
Fight inflation and your debt
It’s a cold fact that everything gets more expensive. Inflation is cruel, making the cost of what you need today like gas, food, clothing and just about everything more expensive. For many who have taken on debts like mortgages, car loans, credit cards, and medical debt, inflation will surely require tough choices. Debt that was manageable 6 to 12 months ago may no longer be. It doesn’t take long for missed payments to be sent to collections, repossessions and foreclosures.
What is Inflation
The IMF (International Monetary Fund) describes inflation as follows:
“The rate of price increases over a period of time. Inflation is usually a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.
Frankly, that means the things you need for your daily life are costing you more. This means you have less money available to pay off any debts you may have
What kind of debts:
· The average credit card debt for American families is $6,270, according to data from the Federal Reserve.
Total auto debt in 2020 hit a record high of $1.37 trillion, according to Experian.
Total student loan debt also set a record in 2021, reaching around $1.7 trillion.
Of course, it is inflation that is hurting these debt holders the most since rising prices cut into their meager household budgets. While Americans have paid off their debt during the pandemic, they have not come close to paying it off. Any cushion resulting from the repayment of this debt will be quickly eroded by the impact of inflation on current expenditure.
Take action now.
When your wages don’t rise as much as prices, you’re worse off. In other words, inflation is like losing wages and your purchasing power or real income (adjusted for inflation) goes down. Real income affects your standard of living. When real incomes go down, your standard of living also goes down, but the amount you need to pay your debt keeps going up.
If you’re feeling stressed about paying your mortgage, juggling car and grocery payments, and struggling to get gas in your car to get to work at Instead of paying off your student loan repayment that got you your job, give the experienced call the debt relief lawyers at Bond & Botes law firms. We are committed to empowering our clients in all aspects of their financial well-being.
Contact us at Bond & Botes to help you get through this time of inflation as we help people struggling with debt
We are local and offer a free, confidential face-to-face consultation with an experienced attorney. We also offer free consultations in the comfort and safety of your home or office by phone and/or video if you wish. Let us solve your financial problems. There’s no obligation, and that means there’s no downside to gathering the information you need to make good decisions about how to break the cycle of debt stress and go forward. We can answer all of your questions regarding Chapter 7 bankruptcy, Chapter 13 bankruptcy, stopping a foreclosure or wage garnishment, avoiding liens, stopping a lawsuit, l medical debt, personal loans, payday loans, credit card debt, etc. We can relieve your stress! We want to help you and we can help you!
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Bond, Botes, Sykstus, Tanner & McNutt, PC
The Web: www.bondnbotes.com
102 South Court Street, Suite 314, Florence, AL 35630
Telephone: 256-760-1010 • Fax: 256-760-1023
Opening hours: Monday to Friday • 8:00 a.m. to 5:00 p.m.
No representation is made that the quality of legal services to be provided is superior to the quality of legal services to be provided by other attorneys.