For many years, a stigma may have surrounded personal bankruptcy as being a tool used only by the fiscally irresponsible. Many of those that come to see us here at The Law Office of Paul Petrillo, however, may be average Salem residents looking for debt relief options following a loss of income. Any number of reasons can contribute to a reduction of income in your home, be it through the loss of a job or an unplanned reduction of your work hours. If and when this happens to you, know that you are not alone. Information shared by the Pew Research Center shows that from the year 2001 to 2014, the median household income of middle-class American decreased by 4 percent.
If you are like most Americans, you carry debt. When a decrease of income strikes, how are you to manage it? Listed below are a few suggestions:
- Make an inventory of your debts: Know what you are dealing with and exactly how much you owe on each one.
- Seek alternative sources of income: If you qualify for some form of compensatory pay, go after it. For example, if you are injured and unable to return to work, you may be able to receive funds through your disability insurance.
- Contact creditors: Explain your situation and see if they might be willing to lower your monthly payments or settle your balances for a lower amount if you can pay them off right now.
- Refinance if possible: Refinancing your mortgage, auto or college loans could make your payments more manageable.
Remember too that there are other alternatives if your debt begins to overwhelm you. More information of what those debt relief options may be can be found by continuing to explore our site.