Spending on vices may lead to bankruptcy

Maryland consumers might find themselves living with too much debt for all kinds of reasons. For some, debt can come from a single, unexpected event. For others, it is more of a slow accumulation that leads to debt. Regardless of how one finds him or herself in a financially strapped situation, bankruptcy can offer reprieve.

Struggling with spending habits

According to a survey from MagnifyMoney, 70% of adults admitted to splurging on their favorite vices during 2020. Of the 1,550 people who participated in the survey, 38% said they had taken money out of their savings specifically to cover the cost of unnecessary purchases. The survey also found that the average person spent $950 on vices, including:

• Lottery tickets
• Cigarettes
• Alcohol

The survey participants reported that they had not sought to spend extra money just for the fun of it, but because it was one of the easiest ways to deal with ongoing stress they had dealt with during the year. Some of those who struggled most with this were those who were furloughed or laid off, as 33% reported going into debt for these purchases. Millennials and Gen Zers also struggled, as 26% and 21% also reported taking on debt, respectively.

It can be difficult to deal with the outcome of one’s actions. However, that does not mean that help is not available to someone who is in this exact situation. Bankruptcy can be a smart, viable option for almost anyone in Maryland who is dealing with more debt than he or she can handle.