Bankruptcy: Unexpected Expenses Can Create Financial Hardships

In periods of financial struggle, some individuals may turn to lines of credit for help in covering expenses. While this type of assistance could provide immediate relief, it may only add to one’s overall monetary problems. With recent studies suggesting credit card debts have reached an all-time high, individuals in Ohio and elsewhere might be experiencing similar issues. Some are undoubtedly exploring available options for relief, such as bankruptcy.

Although many individuals may feel as though their credit card debt is under control, one’s ability to make the required monthly payments could change in an instant. Loss of employment or a medical emergency are just two examples of situations that are often unexpected, and can disrupt a person’s finances in various ways. Should an emergency cause an individual to get behind on credit card payments, the resulting monetary hardships could prove challenging to overcome.

Credit card debt isn’t the only area of concern in the study, as other areas such as car loans and mortgage debts can also be sources of financial stress. The recent growth in certain areas of the economy might have increased access to similar lines of credit. However, these areas might be subject to the same risk factors, and the amounts of debt in auto and home loans may be much higher than those pertaining to credit cards.

Debt of any kind can place an individual under a significant financial weight, and with numerous available options, seeking relief can seem somewhat overwhelming and/or intimidating. When facing a similar situation, one might consider speaking with a bankruptcy attorney for advice on the options for relief, as well as their potential outcomes. By speaking with an attorney, a client in Ohio could obtain guidance in choosing the correct path with which to pursue relief from the burdens of debt.

Source: marketwatch.com, “One major way U.S. credit card debt is getting worse“, Maria Lamagna, Aug. 17, 2017