It seems like costs are constantly increasing lately. Everything is becoming incredibly expensive. Some people have seen increased wages, but, for most, wages have remained stagnant.
This means that the increase in costs could spur an increase in corresponding bankruptcy cases. People who are earning the same amount of money simply won’t be able to make ends meet. But why is it that costs are going up? There are a lot of different things to consider.
The role of inflation
For one thing, inflation happens when more money is being printed and put into circulation. This lowers the value of the money that was already in circulation. Quite simply, a dollar is worth less today than it was two years ago – and worth much less than it was 20 years ago.
A lack of supply
There have also been supply chain issues that mean some consumer goods are in high demand. A good example of this is the current price of automobiles. There’s far more demand for new cars than the supply can actually keep up with. As a result, dealers are raising prices on the vehicles that they do have. They don’t have to do so, of course, but they’re choosing to do so in order to make more money on each sale because they know that consumers will have no choice with such a limited supply.
Are you facing bankruptcy?
If all of this has created a lot of financial problems for you, rest assured that you are certainly not alone. It’s important to think about all of the legal options you have, which may include declaring bankruptcy to clear up debt that you can no longer afford.