Inflation and the impact on Your Debt

Tackling Inflation and Your Debt

It is a cold fact that everything is getting more expensive. Inflation is cruel, making the cost of what you need today like gas, food, clothes, and just about everything more expensive. For many that have incurred debt like mortgages, car loans, credit cards, and medical debt, inflation will surely require hard choices. Debt that was manageable 6-12 months ago may no longer be. It does not take long for missed payments to be sent to collections, repossessions, and foreclosures.

What is inflation

The IMF (International Monetary Fund) describe Inflation as:

“The rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.”

Frankly, it means the things you need for your daily life cost you more. This means you have less money available to repay debts you may owe

What kind of debts:

• The average credit card debt for U.S. families is $6,270, according to data from the Federal Reserve.
• Total auto debt last year set a record high of $1.37 trillion, according to Experian.
• Total student loan debt also set a record this year, reaching about $1.7 trillion.

Of course, inflation hurts these debt holders the most since rising prices cut into their slim household budgets. While Americans paid down debt during the pandemic, they didn’t come close to paying it off. Any cushion that resulted from paying off this debt will be quickly eroded by inflation’s impact on everyday expenses.

Take Action Now.

When your wages do not increase as much as prices, you are worse off. In other words, inflation is akin to lost wages, and your purchasing power or real—inflation-adjusted—income falls. Real income affects your standard of living. When real incomes fall, so does your standard of living, but the amount you need to support your debt keeps going up

If you are finding yourself stressed over paying your mortgage, juggling the car payment and groceries, and struggling to put gas in your car to get to your job instead of paying your student loan payment which made it possible to get your job, give the experienced debt relief attorneys at the Bond & Botes Law Offices a call. We are committed to empowering our clients in all aspects of their financial well-being.

Contact an Experienced Attorney to Help You Through This inflationary Period

We are here to help. The attorneys at the Bond & Botes Law Offices have devoted decades to helping people resolve debt and protect their standard of living. We offer free consultations to people facing overwhelming and unpayable expenses. You can schedule yours right now by calling 1-877-581-3396 or by filling out the contact form us on this page.