How Does Debt Affect Me?

Just about everyone in the United States is affected by debt in some way. The economic downturn, coupled with rising rates of unemployment, has people turning to their credit cards or lines of credit in order to pay their bills. Although the economy has recently showed signs of an upturn, the debt of many Americans remains. Total consumer debt in the United States is nearly $2.5 trillion. It is safe to say that you or someone you know is probably dealing with unmanageable debt.

If you are dealing with out-of-control debt and do not know what to do next, contact bankruptcy attorneys in Philadelphia for help.

How debt in Philadelphia affects you

The negative effects of carrying around a pile of debt are nearly endless. Debt is like a nagging illness, causing pain and suffering to those who have no means to treat it. You must deal with your Philadelphia debt or risk some of these serious consequences:

Emotional. The stress of debt can cause a lot of negative emotion. Anxiety, depression, shame, and guilt are all common side effects. In extreme cases, some people are driven to emotional breakdowns or even suicide. Also, your depression and anxiety can cause strife in your relationships with family and friends.

Career. Debt can actually prevent you from getting a job. Many employers today check credit reports as part of a background screen. If they see that your credit score is extremely low or that you are drastically in debt, they may view you as irresponsible and not hire you.

Credit. Out-of-control debt can have a significant effect on your credit. Bankruptcy, foreclosure, late payments, skipped payments—all of these reflect back onto your credit score. The worse your credit score, the worse your chances of receiving credit in the future. This means you may not be able to buy a home, a car, or even rent an apartment. It can take years to repair a bad credit score.

Wage Garnishment. If you have not paid your creditors and one or more decide to sue you, you can be subject to wage garnishment. This means the money you owe is taken directly out of your paycheck and sent to the creditor.  This not only leaves you with less money, but can also make your financial troubles evident to your boss.

Foreclosure or Eviction. Failure to pay a mortgage or rent can result in you losing your home.

You do not have to stay in debt forever. With solutions like bankruptcy or debt consolidation, Philadelphia law firms can help you examine your options.

Contact Philadelphia attorneys for a free consultation

To find a lawyer in your area, please fill out the online form or call 267-428-1386.