Bankruptcy: The Risk of High Interests Rates and Low Savings

In a thriving economy, many individuals in Ohio and elsewhere may feel that the treat of entering periods of financial strain might not be a pressing concern. However, with near record average interests rates on credit card accounts during a time in which many are unable to build an emergency fund, the risk of encountering issues with debt is ever present. Even a minor change to the economy could leave many facing a need pursue the relief provided through outlets such as bankruptcy.

There may be several reasons in which experts may indicate that even a minor change to the economy could leave some families facing financial hardships. Studies suggest that less than 40% of Americans have enough in savings to cover even a lesser financial emergency and that nearly 30% of individuals have no savings at all. When mixing a lack of savings with average interests rates that sit at near record highs, any change in circumstance could prove devastating.

The results from a recent survey indicated that there are nearly 40 million Americans who have carried a constant balance on a credit card account for more than two years. Nearly eight million others admitted that they have carried similar forms of debt for much longer. Those who begin to struggle keeping up with similar obligations may be left seeking out ways to reduce or eliminate their debts, but the process can be stressful and intimidating.

Individuals who encounter significant financial hardships may wish to obtain a better understanding of their available options, but they might be uncertain where to turn for advice. Fortunately, there are attorneys who can examine a person’s financial situation and provide guidance in making informed decisions about the situation. A bankruptcy attorney can work with a client in Ohio in developing a plan to seek debt relief and assist him or her in navigating the process.