It is evident that Americans are seriously drowning in debt. Things were still okay before the recession but once the economy turned, jobs were lost and people's savings had to be used just to survive. This was the beginning of the debt crisis, foreclosures, and insolvency.
Even though some economists believe the US economy is recovering, most Americans are still having trouble getting out of the debt they have found themselves in.
Debt is not a new thing, and in some cases, it is a good thing, which allows us to buy cars and homes, etc, but the problem comes in when we are no longer able to repay the loans made.
There are legal protections in place for people paying back loans to creditors and protecting them from illegal debt collection procedures in most states. It depends on which state you live in how much protection you are entitled to receive, especially with regards to credit card debts.
Types of Debt Affecting Americans
Consumer debt was fast approaching $14-trillion, according to the NY Federal Reserve.
There has been continuous growth in the sectors of auto, home, credit cards, and student loans.
Auto - The total auto debt of 2019 increased to $1.3-trillion.
Home --- Total mortgage debt increased to $9.4-trillion by the end of 2019.
Credit Cards - Loans of this nature crossed over the $1 trillion mark in 2019.
Student Loans --- Continue to escalate, reaching a record of $1.48-trillion in 2019.
In 2005, the Bankruptcy Protection Act was passed, which made it more difficult for individuals to file for bankruptcy, which cause the general public to turn to credit cards in order to try and pay off their existing bills and loans. What happened then, was that that credit card debt reached an all-time high. Most of the debt was expected to be medically-related expenses.
While these issues have placed Americans in debt, there are other factors that play a role in why they cannot get out of their current financial situation. Some of these factors are the fact that many people cannot create or stick with a budget that allows them to be in a position to pay their debts off quicker. In general, Americans tend to spend more money on take-out than anywhere else, which makes their food expenses higher than they should be. Because many Americans are overweight due to all the fast food, their medical bills increase due to health-related issues.
The good news is that there is a way out of this situation and Pinnacle Lending is one of the leading companies that are there to assist you every step of the way, to help you get back to be debt-free. Here is what Pinnacle Lending can do for you and your family.
Pinnacle Lending offers a variety of tools to help clients sort out their debt issues. They can assist you with refinancing your current loans and will give you the correct advice as to when you should do so. They can help you with additional loans at very low-interest rates, which will not add to your problems. Financial advisers are there to help you create a plan that you can implement in your everyday life to slowly get yourself back on track.
The consultants will help to consolidate your debts, which allows you to have one single payment each month, instead of numerous payments to have to worry about. They can also assist you with your credit report and how to improve your overall score.
Pinnacle Lending is a company that takes your best interests to heart. They are there to help you!