According to a February 4th article in The Post and Courier, the Corporation for Enterprise Development’s new study has indicated that South Carolina residents are in dire financial straits. In fact, the study considered a variety of economic indicators that attest to a state’s financial stability and found that South Carolina ranked 48th out of 50 states in terms of the financially security of its residents.

Our Columbia, SC bankruptcy attorneys are concerned that so many South Carolina families are in danger of financial disaster or are already coping with financial calamities. We encourage families who are struggling with a debt burden that is unsustainable to explore all of their options including bankruptcy.

South Carolina Residents are Struggling

According to the Post and Courier, the Corporation for Economic Development indicated that almost half of all residents of the state of South Carolina were living on the brink of financial disaster. Approximately 47 percent of those living in the state have little money saved or have no money saved at all.

Other key factors that impact the perilous financial state for many South Carolina residents included wages that are lower than average; low levels of educational attainment; and an unemployment rate that is higher than average.

There was some limited good news, including the fact that college grads in the state tended to have a lower default rate than other areas in the U.S. and the state’s high rate of homeownership amid an affordable housing market. However, this news is little comfort to a family that has no savings and that is facing a debt or financial crisis.

What to Do If You Are Struggling

If you have no savings and you lose your job or end up needing to come up with cash for necessities like home repairs or car repairs, it is important to try to stay away from payday loans and car title loans that can have very high interest rates. When possible, pursue more conventional options like bank loans to avoid becoming trapped in a debt cycle you cannot repay.If you already are struggling with debt that has reached unacceptable levels, then bankruptcy might be the answer. Bankruptcy can be preferable to throwing good money away paying interest on a debt that you’ll never get paid down.

Filing for bankruptcy is also a far better solution than cashing in any type of retirement account or borrowing against the equity of your home to try to dig your way out of debt. Your home equity and most types of retirement savings are protected by bankruptcy laws so that you can address your debt problem and fix your financial situation without affecting these very important sources of financial security.

So, if you are in a situation where your debt has become so bad that you truly don’t think you can pay it, you should not hesitate to get the process of bankruptcy started so you can begin to get back on track.

If you are considering bankruptcy, contact the Columbia, South Carolina attorneys at Matthews & Megna today at 877-253-7705.