While there have been several false starts in thinking we were in the clear ‘after COVID,’ illness due to variants despite vaccinations continues to raise question marks for the future, leaving everyone wondering when there will ever be a sense of normalcy again—and especially for working, going to school, traveling, and so much more. There are much greater stressors for most however, in terms of worrying about very real health issues caused by COVID (or other serious medical problems too) as well as the plethora of financial complications accompanying the pandemic.
Although credit card debt was beginning to decline as a whole while Americans were forced to take cover to avoid COVID as much as possible from the spring of 2020 and on, you may have experienced the exact opposite. As tens of millions of people were left unemployed, the emergency funds and any balances left on credit cards were the first to go. And while it is obviously never a good idea to use credit cards with little hope for paying back the balances on time, COVID rendered millions financially desperate. In weighing out running up a credit card bill or letting kids starve, the answer for most is clear.
And now, credit card debt overall is beginning to climb again as consumer and household debt also begin to increase just enough to cause concern—nostalgic in terms of the historical highs being hit quarter after quarter.
“Once government stimulus ends, then we get a consumer mostly on their own holding their debt capabilities up,” said Stephen Biggar, of Argus Research.
If you are being sued, do not take legal action lightly. This is especially important if you have already received a summons and complaint and are well into the 20 to 30 days allotted to answer to the collection lawsuit. Without any action, you could easily find yourself vulnerable to a default judgment. You may not be employed currently and may not think you have anything at all to lose, but a default judgment can be good for ten years in California, and then extended for another ten.
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.