Throughout life, financial ups and downs occur—along with the peaks and valleys of our personal lives; however, the COVID-19 pandemic has brought on a unique and horrific devastation all of its own for health and commerce.
You may have already been dealing with serious debt issues prior to the massive coronavirus threat— with little tolerance for any other added stress. Many Americans were already in the same boat too, with tens of millions finding themselves suddenly thrust into unemployment, compounding debt problems exponentially as just one month without income could be devastating in terms of responsibility for basic bills.
Along with debt concerns, you may not have had an emergency fund built up, or what little was there has already been depleted. Far too many are already living paycheck to paycheck, and with no extra funds for savings at all, the “new normal” is certainly very difficult to swallow. Lack of savings or an emergency fund also makes it challenging to pay off items like credit card debt. This is especially concerning if you are being sued over a delinquent credit card account or another type of debt, and it would be more desirable to negotiate rather than launch a weak defense. With nothing to fall back on, there could be numerous, negative consequences.
Recent numbers are pretty disturbing, showing that a mere 18% of Americans would be able to survive on just savings for six months. This is especially relevant for a continually growing area of the work force:
“If the demands aren’t really there, that really shifts a bunch of risk to the employee,” said John Thompson, chief program officer at the Financial Health Network, formerly known as the Center for Financial Services Innovation.
“Do I know when I’m working? Do I know how many hours I’m going to get, and then in turn what my income is going to be for this week or next week, or the week after? The employee is generally powerless against that kind of intelligence.”
If you are concerned about escalating debt, or potential collection lawsuits, it is in your best interest to speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options.
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.