How U.S. household debt increased by $1 trillion in 2021, and how to decrease it
Inflation levels are hitting historic heights day by day, and the consequences have already started to show. According to the New York Fed’s quarterly report, U.S. household debt grew by a whopping $1 trillion, which is the highest increase since 2007, right before the housing bubble. If you’re one of the contributors, read on to find out all you need to know to potentially ease your situation.
The reasons behind the increase
As mentioned before, historical inflation heights likely played a major role in the uncanny increase. According to a recent publication by Reuters, the raise was amplified by the climbing prices of housing and consumer goods, which many individuals could not afford as out-of-pocket expenses anymore. Auto loans became one of the most significant types of debt, with a balance that has been constantly increasing since the 2008 crisis. It is worth mentioning that while some households, typically the ones with above-average income, seem to be handling the escalated burden relatively well, the majority will struggle to keep up with the increased monthly costs.
The consequences
As a result, many American families are put under pressure. Researchers say that while some of them have financial reserves that can win them a little time, others don’t have such privilege and must act in the near future to avoid the risk of losing their valuables.
The solution
For many, there are two options left: finding a way to increase income or searching for a solution to reduce outstanding debt. The first choice is unfortunately not as easy as it sounds for the majority who struggle with this issue, as employment opportunities and paycheck boosts are oftentimes limited across numerous states. On the other hand, the second option only depends on the individual’s willingness to find a solution. For instance, a popular, proven way of debt relief is debt settlement, which could be a viable option for many. The process usually starts with an individual reaching out to one of the debt settlement companies after having evaluated the solutions they offer. Then, if the co has a proven track record of high success rate, it will delegate a professional who received special training and education in the field and who truly understands the ins-and-outs of the debt settlement process. During an initial consultation, the client presents the situation at hand, including her/his full outstanding balance, the types of debts, and the terms of the debts. Then, with the personal consultant’s guidance, the information is evaluated, followed by the development of tailored potential solutions. After this relatively fast process is completed, the only thing left to do from the client’s side is to approve the consultant’s suggestion as for which choice might be the most optimal in the given context. Finally, the company will also do the heavy-lifting for you and negotiate a debt settlement with your creditors that could potentially turn out to be a huge financial weight lifted off your shoulder.
Take the next steps
At Americor, we understand your struggles, and for that reason, we made it our mission to ease the financial burden of those in need. If you liked what you read above, we have great news for you, as that description was actually walking you through our standard protocol. Take the next steps, reach out, and be joined by one of our professional consultants, with whom you will be able to clearly see all your opportunities; who knows, the solution that gets you out of trouble might be closer than you think.
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