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Credit Card Debt & Student Loan Debt Already a Problem Before COVID

woman looking at bills

As they say, 2020 was one for the history books; however, as 2021 continues, it looks like that time period might be extended indefinitely. Although the economy began to recover with the new year and a sense of hope and optimism as restrictions were lifted and vaccines became widely available, variants of coronavirus continued to sweep the world and the US.

US citizens were already dealing with debts accrued prior to the unexpected and horrific pandemic; in fact, both consumer and household debt were already reaching staggering, historic highs quarter after quarter, and although financial analysts were beginning to get worried, lenders were still giving out credit and Americans were enjoying spending. Few could have been prepared for or even had an inkling of what was about to happen though, and as spring approached, millions were already stressed about their current debt issues—mainly in terms of credit card debt and student loan debt.

Student loan debt was high on the priority list when it came to worries, nearly immediately. Although so many were falling sick and some were dying in ICUs too as soon as the viral pandemic made its presence known in the US, financial issues were at the forefront nearly as fast. The government took rapid measures to offer deferments on much of the federal student loan debt, but private student loan borrowers were left out in the cold, and at the mercy of private student loan servicers offering little to nothing in terms of any breaks.

Creditors and debt collection agencies had begun to come back to life and were eager to see millions of debts satisfied. For many consumers, what little was left in terms of available balances on credit cards was quickly used up. Not only that, tens of millions were suddenly left unemployed too. It was the perfect storm of both health and financial devastation around the US.

If you are once again receiving non-stop calls and letters from debt collection agencies, speak with a debt protection attorney from Fitzgerald & Campbell, APLC as soon as possible. This is even more critical if you have been served with a summons and complaint. If you are being sued, generally you will have 20 to 30 days to respond to the lawsuit. This is very important to do, and with the help of a legal professional! Without any attention to the matter, you could be at the mercy of a default judgment. Your credit will take a big hit, but even worse is the potential for garnishing of wages (up to 25 percent in California), levying of personal property, and loss of control over financial accounts too.

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