Picking Up the Pieces: Dealing with Credit Card Debt After COVID

For millions of Americans, it has been a very rough year. For many, illness due to COVID-19 was accompanied by serious financial issues—and it can be very difficult to dig out of such challenges, especially if they were already combined with debt due from previous years too.

As tens of millions of people lost their jobs and the priority for so many switched to making ends meet regarding the basics, there were a lot of responsibilities to consider. What about private student loans? Many federal student loan borrowers were given substantial deferments through The Cares Act (for loans actually owned by the government) while private student loan borrowers were left in the cold, aside from a smattering of relatively low-key programs offered for borrowers in financial distress due to COVID. What about mortgages? Rent? Credit cards? While moratoriums were placed on evictions and creditors and debt collectors were hushed for many months, at this point, landlords and companies are ready to collect their money. This could pose difficulty for many people who have not recovered, and may not really be able to do so for at least several days.

Credit card debt is an even more complicated issue, caused by the repercussions of COVID-19. As restrictions, shutdowns, and lockdowns began, it became quickly apparent to most Americans that the economy was going to be experiencing unique challenges. For those who were able to continue working from home, and for individuals who had emergency funds squirreled away, there were still many new details to adapt to, and questions about the future.

In the end, tens of millions of workers lost their jobs, and most emergency funds dwindled dangerously. In many cases, credit cards became the only form of income. And while it is certainly a slippery slope to use credit cards when you don’t have a job, undeniably, desperate times calls for desperate measures—especially when there are essential bills to be paid, groceries to be purchased, and prescriptions which must be filled.

If you are now being sued over a credit card debt, speak with an attorney as soon as possible to deal with the problem. Even if you don’t feel like you have anything for anyone to take at this point, consider that if a default judgment is granted against you, it could be good for up to 20 years. Without a reply or any attention to a collection lawsuit you could find yourself dealing with other serious headaches like wage garnishments (up to 25 percent of your disposable income), levying of property, and freezing of checking accounts.

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 issuesbankruptcy, 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 info@debtorprotectors.com.

Categories: 
Related Posts
  • Dealing with Credit Card Debt after COVID-19 Read More
  • After COVID: Nearly 60 Million US Citizens Increased Credit Card Debt Read More
  • Credit Card Debt: A Growing Problem for Seniors Read More
/