Unemployment remains high and with that comes debt

On Behalf of | Dec 21, 2011 | Personal Bankruptcy |

The tough economy has left millions of Americans unemployed. Although it has been a few years since the recession began, many people are still struggling to find employment.

According to a study by the John J. Heldrich Center for Workforce Development at Rutgers, only seven percent of people who lost their jobs after the financial crisis are still living at or exceeding the income level they once had. Most people who lost their jobs during the crisis have diminished lifestyles, and may have incurred a great deal of debt.

One man, after working 22 years for a company, was laid off and has since applied for over 100 jobs. He remains unemployed. He has also has credit card debt, has drained most of his retirement accounts and will likely be selling his car soon.

The Rutgers study found that those who had less education were hit the hardest, and even those who managed to find work made much less money than before. Few of the jobs that were lost two years when the downturn began have been reinstated, and close to 50 percent of the 13. 1 million people still searching for work have been unemployed for six months or longer. Almost 9 million more are working part-time because they are unable to find full-time work.

People in Tennessee who are unemployed may find themselves in a great deal of financial trouble. For those dealing with debt, filing for bankruptcy may be the best option because it gives people the opportunity to start over, and get back on their feet.

Source: New York Times News Service, “Job losses for many; good new jobs for few,” Motoko Rich, Dec. 2, 2011


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