Debt is more of a concern than ever due to the restrictions, shutdowns, and lockdowns caused by COVID-19. While consumer and household debt reached historical highs quarter after quarter previous to spring of 2020, health and financial concerns completely eclipsed all of the normal worries. Suddenly US citizens (and people in nearly every part of the world) had a new list of worries based around the dangers of catching coronavirus, along with all the money problems that came along with loss of jobs, loss of businesses, and the loss of access to normal life.
Hundreds of thousands of people died, and millions fell ill, with long-term effects to organs like the lung, heart, and brains, that doctors are just beginning to learn about. Unfortunately though, the pandemic was accompanied by massive unemployment too. People lost their jobs abruptly. For many younger workers just getting out into the service sector—many with their first jobs—hours were cut almost immediately or were substantially reduced. For more established individuals, their careers may have been disrupted, with little hope for getting back on track.
Student loan debt quickly became a question mark, and especially for borrowers with private student loan debt. While federal student loan debt was put on hold significantly for millions of borrowers due to the provisions of The Cares Act, not all were covered. Private student loan borrowers were left to figure out things on their own for the most part, although there were some modest programs available, beginning with private loan servicers like Navient.
Use of credit cards was a necessity for many US citizens, and especially due to loss of income. For many left with no emergency funds and no income, available credit card balances were the only way to make it through—for as long as possible. As a result, as weeks turned into many, many months, credit cards were maxed out, savings accounts drained, and the future looked very uncertain.
With debt collectors kicking back into business after threat of COVID seemed to diminish, however, suddenly many Americans found themselves dealing not only with pandemic-induced money owed, but also debts incurred prior to 2020. Suddenly, collection lawsuits began to flood the courts again, to include default judgments.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at email@example.com.