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Entering the new year facing high levels of debt

| Jan 1, 2021 | Bankruptcy

With the end of the year approaching swiftly, many individuals in Maryland and elsewhere may already be compiling a list of resolutions for the upcoming year. In some cases, these resolutions could revolve around finding ways to regain control over one’s financial future, especially if the holiday shopping season leaves behind a wake of monetary stress. While recent studies indicate that many individuals are willing to go into debt during the holidays for various reasons, some might not be fully prepared for what might happen when shopping bills come due.

Results from a recent survey suggest that many Americans admitted to being willing to go into debt during the holidays. This reportedly includes parents who said they were willing to take on higher levels of credit card debts to buy gifts for their kids, even if they were already carrying revolving balances. While in some cases, others admitted to taking on similar mindsets to make a partner or loved one happy, others suggested they would even be willing to take on debt to purchase gifts for themselves.

These studies also indicated that many consumers say they also entered this season without a strategy for holiday spending. Approaching this season without a plan or budget can be detrimental in various ways, as it could increase the risks of overspending. Credit card debt also continues to be a major concern at the start of each year, as those who do not have the funds to purchase gifts may view credit accounts as temporary means of aid instead of a possible financial risk.

Approaching a new year while facing substantial amounts of debt can be a daunting process. Individuals in Maryland who encounter similar issues and wish to take action to resolve such matters could find it helpful to consult with legal counsel prior to choosing a path. By speaking with a bankruptcy attorney, a client could obtain advice on all the available options for relief and assistance in creating a strategy to protect his or her financial future.