Debt: America's Current Financial Crisis

Debt is one of the greatest obstacles any adult can face, and unfortunately, it has become a pervasive problem in our modern society. In order to better illustrate the current debt burdens American households are carrying, our Lake of the Ozarks debt collections defense attorney is here to share the following 2016 statistics compiled by NerdWallet.

Here is how much debt the average household has in each of these categories:
  • Credit cards - $16,748
  • Car loans - $28,948
  • Student loans - $49,905
  • Mortgages - $176,222

Any given household may carry more or less debt than the average in each of these categories, depending on the family's specific lifestyle/needs. NerdWallet goes on to reveal that after adjusting the totals in any given category, the average household carries a total debt balance of $134,643 (including mortgages).

What Happens To All That Debt?

Typically, consumers take on debts to cover certain large purchases they would not otherwise be able to afford, such as a house, car, or boat. Ideally, consumers should analyze their big financial picture to determine how much debt they can afford to take on, and then take steps to repay their debts following the monthly schedule they agreed upon with their lenders. Unfortunately, it doesn't always work out that way.

Sometimes, life circumstances make it impossible to carefully weigh the pros and cons before taking on new debt. You may find it difficult to make ends meet one month and resort to credit cards to make up the difference. Alternatively, your employment (and therefore your income) may change, making it difficult or impossible to keep up with your monthly debt payments. Whatever the reason, the resulting situation is the same - you may suddenly find yourself saddled with debt that you cannot afford to repay.

When Debt Goes Unpaid

If you are late on a payment for your debt(s), the first thing that often happens is simple - you'll receive a communication from your creditors notifying you of the missed payment. Your creditors will most likely charge you a late fee as a consequence. If you make your payment and pay the late fee in a timely manner, the issue may go no further and everyone can move on.

Of course, if you didn't have the money to make the payment in the first place, you may find it difficult or impossible to make the payment as well as the late fee. Unfortunately, the longer you wait to make your payment (and the more months you miss) the more financial penalties you'll accumulate in the form of late fees and additional interest.

Long-Term Unsatisfied Debt

If your creditor is not able to secure payment from you, a number of different things may happen. If your debt is secured with collateral (such as your house or your car), the creditor may begin the process of trying to seize this collateral. The creditor may also sell your debt to a debt collection agency, at which point the collection agency will become your point of contact for dealing with the debt in question.

You may also be served with a lawsuit over your debt. Debt collection lawsuits are very serious - if not addressed appropriately, the consequences may be long-lasting and severe.

Building Your Debt Collections Defense

If you are being faced with a debt collection lawsuit, all may not be lost. You may have a valid defense, even if it does not seem obvious to you.

Our debt collections defense attorney at the Lake of the Ozarks can help you evaluate your situation to determine what strategy may be most advantageous for you. Our primary goal will be to ensure that your rights remain protected at all times. 

To learn more about our Missouri debt collections defense services, visit our website at www.ODonnellLawCenter.com. You can also call us directly at (573) 552-0317 to schedule your initial consultation.
We Carry Your Burden ~ You Carry On With Life.

Disclaimer: No attorney-client relationship is created by the publication of this blog.

The choice of a lawyer is an important decision and should not be based solely on advertising.

Phone: (573) 552-0317

O'Donnell Law Center, LLC
1026 Palisades Blvd. Suite 3
Osage Beach, MO  65065
Location: Osage Beach, MO 65065, USA

Comments

Post a Comment

Popular posts from this blog

Top 5 Ways to Make Divorce Easier on your Children

Image
Divorce is a tough time for everyone involved – especially kids. It can be hard for young children to understand what is happening to their family. It can be difficult for children to process this time as their family dynamic changes. As your divorce attorney in Osage Beach, MO , our law center sees a number of children struggle as their parents get a divorce at the Lake of the Ozarks. We’re here to help parents through the divorce process but we’d also like to help offer advice on how to make this stressful time easier on your kids, as well. 1) Be Honest It’s best to be honest about your divorce with your kids. While they may not need to know all the ugly details, they deserve to know what is going on with their parents. Have an open conversation about your divorce from your spouse and let them know they can ask any questions they may have. Try to answer any questions in an honest and positive manor. 2) Encourage them to Share Feelings You should always encourage your kid...
Read more

Cremation vs Burial – What’s the Difference?

Image
Planning for end of life may come with more decisions than you first expect. Creating an estate plan near the Lake of the Ozarks can help relieve your loved ones from having to make many tough decisions upon your passing. Not only can you decide who will receive your assets, you can also plan your end of life wishes for being laid to rest. Our estate planning attorney in Camden County, Missouri wants to help inform you of some of the decisions you’ll need to make as you make your end of life plans. In this week’s blog, we’re comparing the difference between cremation and burial options for being laid to rest. All About Cremation: Cremation is the act of being incinerated until your remains become ashes. This method of body disposal is becoming more and more popular. Timeframe – cremation can take place further after death. The flexibility with time allows your family time to gather and plan a more personalized ceremony. Paying Respects – family and friends can memorialize th...
Read more

Meet Attorney Deirdre O'Donnell!

Image
Positive and genuine client relationships are our number one priority at O'Donnell Law Center. We truly care about getting to know our clients so we can provide them with the best possible legal services at the Lake of the Ozarks . We recognize that strong relationships are a two-way street, though, so this week we're dedicating our blog to helping you get to know the Lake of the Ozarks' top attorney , Ms. Deirdre O'Donnell. Getting to Know Deirdre! I was born in St. Louis, Missouri on February 22, 1962. I graduated from Pattonville High School in St. Louis County and went on to earn a BA from Washington University in St. Louis, a Master's Degree in Social Work from Washington University and a Juris Doctorate Degree from Washington University School of Law. By 1996, I was licensed to practice law in the state of Missouri. In my young adult years, I played keyboard and performed in various St. Louis venues in a contemporary jazz band. I later worked a...
Read more