The economy has become difficult for many Americans. Costs have been going up as businesses post record profits. But wages have not increased to match those costs, so people are naturally running out of money.
This can be seen in a rising number of foreclosures and car repossessions. These are often the two biggest assets that people will purchase, and they will take out mortgage loans or car loans to do so. When these items start to get repossessed, it shows that people are facing significant financial hardships.
It is likely going to get worse
Unfortunately, there is some evidence that things could be getting worse in the future, making it even harder for lenders to reclaim the money that they are owed. For example, one can look at the gross domestic product (GDP) to see how healthy a country’s economy is. Reports have shown that the GDP in the United States recently fell by 1.1%. This may not sound like a lot, but this puts it at the lowest total in the last nine months. That is not necessarily an optimistic prediction for the future.
The lack of funds can also be seen by polling individuals. One survey asked people if they had more or less in savings than they did a year ago. A full 49% of people said that they had less. It’s also notable that about 10% claimed to have no savings. This suggests that those who are gaining wealth in America are in the stark minority. Most consumers are being left behind.
Overall, it is likely that debt collection issues are going to be very common moving forward. That’s why it’s so important for those involved in this process to understand what legal options they can utilize.