Budget Busted from the Holidays? Let’s Work to Clear Those Debts

Even before the holidays, credit card defaults were rising significantly. A June 2024 report showed that the year was on track to have the highest default rate in more than 12 years.

That takes you back to the Great Recession.

Economist Sean Snaith discussed this issue at the Seminole County Chamber’s Good Morning Seminole, specifically mentioning how inflation has risen, but wages have not followed suit.

Unfortunately, most people try to maintain their lifestyle by using credit cards without cutting expenses. While this may be a short-term fix, it is unsustainable in the long term, especially as prices continue to rise.

For many people, the holidays pushed their finances over the edge. After all, American consumers spent nearly $1 trillion in November and December, up nearly four percent from the year before.

If you are someone seeking financial relief, the attorneys at The Orlando Law Group can work with you and your debtors to help put you on the right path.

Filing for bankruptcy protection is an option

One thing to be clear: There is no shame in filing for bankruptcy protections. After all, President Donald Trump has repeatedly utilized the bankruptcy code throughout his career.

While he has not filed for personal bankruptcies, his businesses have filed for protection under the bankruptcy code six times over his career. In each circumstance, Trump was able to reduce his debts and move on to build his businesses stronger.

The important aspect of this is not about Trump’s business acumen, it is about how there shouldn’t be a stigma about filing for bankruptcy protection. Too often, things happen outside of our control, or we make a series of bad choices like most people do.

The entire purpose of the country’s bankruptcy code is to help businesses and individuals restart their lives when these things happen. There were more than a half million filings for bankruptcy protection in 2024.

If you’re at the point where you simply cannot pay your bills, it is OK to look at bankruptcy protection as a way to start over.

Here are five reasons you should look at filing for bankruptcy according to Debt.org.

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