Most people do everything they can to better their future. One way that many young people try to do this is by going to college. This education is supposed to give people the competitive edge they need to land a stable and well-paying job in the future. However, this isn't the reality for many graduates.
Those Tennesseans who are struggling with overwhelming debt are not alone. In fact, a recent study conducted by the Urban Institute and Encore Capital found that more than one-third, 35 percent, of Americans who have credit files have debt that has been turned over to collection agencies. That's 77 million individuals. The study assessed non-mortgage debts like medical expenses and credit card bills that were so overdue that the account was handed over to collections. The median amount in collections is more than $1,300, a significant amount. Of course, many face much higher debt amounts that can leave them financially debilitated.
As college tuition and the cost of living continue to rise, more and more Americans are finding themselves with overwhelming student loan debt. With high interest rates, these debts can quickly spiral out of control and leave a borrower stressing over whether or not he or she will even ever be able to afford to pay it off. When such personal debt creates extreme financial challenges, these individuals may find themselves asking if they can discharge their student loans through bankruptcy.
In today's struggling economy it is not uncommon for an individual to be struggling with personal debt. In fact, one out of every seven individuals is currently being pursued by a debt collector. Medical debt, credit card debt, mortgage debt, and student loan debt can all mount, and before one knows it he or she is overdue on debt and is being harassed by creditors. In some instances, overwhelming debt can even lead to wage garnishment. However, certain protections are in place to protect consumers from debt collectors, and Tennessee residents should take note.
A long-time business owner operated Burger King Franchises for more than 30 years. He sold those franchises in 2007 in favor of some other ventures, including the San Francisco Oven franchise and the Macaroni Grill franchise. However, this change in operations did not work out in his favor. After these major acquisitions, he had to shut down at least one of the restaurants, and he has been left with substantial debt.