Massachusetts consumers are struggling under the current economic circumstances, and many have had to find ways to make ends meeting during these difficult times. One way that some have been doing this is by taking on additional debt. While this can provide a temporary fix to some financial problems, the reality is that consumer debt can quickly spiral out of control and cause additional complications.
Many families were already carrying debt from mortgages, student loans and credit cards when the most recent recession started. Much of the new debt consumers have accumulated recently is due to high-interest loans from payday lenders or from credit cards. Higher interest rates are riskier for struggling households, and it is ultimately more costly, even if the loan fixes a financial emergency financial.
While accumulating debt is not always prudent, many consumers will need more access to debt to get through these difficult economic times. However, lenders, banks and card companies are likely to continue to limit access to consumers. Debt that is easily available will be riskier. Attempts to simply stay afloat could ultimately result in Massachusetts families struggling under a debt burden they cannot hope to manage on their own.
Consumer debt can be overwhelming. While it may seem like there is no way out, bankruptcy options could offer some the opportunity to deal with certain balances once and for all. Individuals who cannot make payments and are experiencing the difficulties of dealing with collection efforts may find it beneficial to explore the potential benefits of filing for bankruptcy.