The number of Americans filing for bankruptcy has climbed to its highest level since before the COVID-19 pandemic, signaling mounting financial strain among households.
Economists and credit counselors note that a combination of record consumer debt and persistent inflation is driving the surge. Many households took on higher credit card balances and loans during the years of low interest rates and pandemic relief.
As relief programs expired and prices for essentials—from groceries to rent—stayed elevated, more individuals are turning to bankruptcy protection as a last resort. While it can offer a fresh start, bankruptcy also carries lasting consequences for credit access and future financial planning.
This spike in filings underscores broader concerns about the resilience of consumers worldwide. Young professionals, entrepreneurs and families across all regions may soon feel the ripple effects of tightening budgets and debt stress.
Reference(s):
cgtn.com
