Here are some of the current headlines:
"How sky-high inflation is evaporating Americans' savings, imposing 'cruelest tax' on the poor" ABC News
"Rising prices put American families in deeper debt" FOX Business News, which states in the body:
"... According to a recent study from NerdWallet, Inc. the average U.S. household owes $155,622, with American households holding $15.23 trillion in debt nationwide. That figure is up 6.2% from a year ago..."
"The Fed Has Signaled Rate Hikes for 2022. Here's How That Could Impact Consumers" the ascent, which states in the body:
"... Once the Federal Reserve raises its rates, we could see credit card interest rates follow suit. That would be bad news for consumers who rack up balances during the holiday, or who carry existing balances into the new year..."
"Get ready for the climb. Here’s what history says about stock-market returns during Fed rate-hike cycles. MarketWatch, which states in the body:
"...To be sure, it is harder to see the market producing outperformance during a period in which the economy experiences 1970s-style inflation. Right now, it feels unlikely that bullish investors will get a whiff of double-digit returns based on the way stocks are shaping up so far in 2022. The Dow is down 1.2%, the S&P 500 is off 2.2%, while the Nasdaq Composite is down a whopping 4.8% thus far in January..."
So, people are exhausting their savings, paying more for the essential goods, accruing more debt, and interest rates on current credit card debt is set to rise. Along with all this economic news, the federal stimulus money has ended. If you are just keeping your head above water now, you may start feeling like you are trying to bail out the Titanic in a few months.
On top of all this, your retirement accounts (401(K)'s, IRA's, 403b's, etc.) will probably see a rough ride as well. This is not the time to withdraw retirement savings. I would argue it in never time to withdraw retirement savings if you are not retired.
This may be the time to start the year with a clean slate? If this is the case, talk to a bankruptcy attorney about options.
If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.
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