Many parents with young children at home often find themselves struggling financially. According to a recently published article, two things are affecting this particular population right now, and those things are student loans and childcare expenses. It is impossible to pay off student loan debt without a job, but for many Michigan residents, it is difficult to find employment that gives them the funds they need to pay their loans off and cover the cost of childcare — which keep going up every year.
Roughly 25% of Americans with student loans have balances of $37,000 or more, which means they are supposed to be paying just shy of $400 a month to keep their accounts current. According to the Center for American Progress, the average family spends $250 a week for childcare. So, between student loans and childcare, young families are finding themselves out about $1,400 a month. That is more than most pay for a mortgage or rent. If they add on transportation expenses, food, insurances and other necessities, that leaves them with little — if any — disposable income at the end of the month.
What do these families end up doing then when all of their combined expenses are equal to or more than they bring in? Some turn to family for help, some take out other loans, some turn to credit cards, some work multiple jobs and others choose to default on their student loans. Most continually sink further into debt or struggle for decades trying to stay afloat.
Michigan residents who are struggling with debt may have relief options available to them, such as bankruptcy, among others. Currently, student loans cannot typically be discharged in bankruptcy. However, other debts may be. Those who would like to learn more about bankruptcy and other debt-relief options can turn to legal counsel for the information they desire and assistance pursuing relief in the manner best suited to their circumstances.