Over the last few years, the cost of living has dramatically increased in much of the United States. Part of the reason for this is simply inflation, which is driving up general costs. The conflict in Ukraine has also made it so the cost of things like energy and food have increased.
Economists note that the initial costs tended to impact things like home renovations, home purchases or the purchase of new automobiles. They referred to this as more of an “optional type of inflation.” Essentially, a car may cost more temporarily, but people could choose if they wanted to buy a car right then or if they would rather wait and see if the price went down.
But the problem now is twofold. For one thing, many of the costs that increased in the past are not going back down. Additionally, with things like gas and food prices increasing, people are beyond the point of anything being optional. This is also true with the increase in the cost of housing, whether that means getting a mortgage or paying rent.
What if you can’t avoid the costs?
The issue that these non-optional costs create is that people are going to have to take on debt if they can’t afford it to make a purchase. They don’t have the option to skip that purchase. This could lead to a spiral of overwhelming debt that people feel they have no way to pull themselves out of.
Fortunately, there are sometimes legal options that can be utilized to eliminate some of this overwhelming debt. Bankruptcy is one example, and it helps to show why it’s important to understand all of your legal options.