In the past year, the United States has witnessed an 8.5% increase in the Consumer Price Index (CPI). In other words, in the spring of 2022 (as compared to spring of 2021), it is 8.5% more expensive to pay for a mix of basic consumer goods such as food, gas, and other necessities. The impact of the inflation varies for each American, but the overall pain can be felt in everyone’s household in one way or another and to some degree and extent.
Southern California is Hard Hit by Inflation
The Southern California region has also seen an 8.5% increase over the same period. The price hike may not be uniform throughout the entire region, but it is nevertheless hard hit. While some items have risen less than 8.5%, others, like food, are right in line with the aggregate increase. And still others far exceed the 8.5% inflation. For instance, gas prices have increased more than 36%.
If you are on a fixed income trying to make ends meet, even a slight increase in inflation can significantly impact you. The 4th Annual Salary Finance report reveals:
- 45% of survey respondents said they were financially stressed–more than in any of the previous three years
- 75% said inflation had impacted their finances
- 55% said they’d had less cash on hand during the past year than during the year before
- 76% said the rising cost of consumer goods had affected them, and the percentage jumped to 84% among those with annual income of less than $55,000
For some Southern California residents, there may be more bad news to come.
How Can Chapter 7 Bankruptcy Help You Deal with Inflation
For some people, the first line of defense when something breaks their budget is to scale back costs. Others look for ways to increase their income to deal with the increased cost of living. For some, more drastic measures may be the only solution.
Filing bankruptcy will not lower the cost of consumer goods, but it may help you weather the changes. If you are servicing high-cost debt like credit card debt, monthly payments will not reduce your debt because payments will only go towards interest. Filing Chapter 7 bankruptcy could help you absorb increasing prices. Before you may any decisions, however, it is best to first consult with a bankruptcy attorney to explore your options and make the best decision for your specific situation.
Call an Experienced Central Valley Bankruptcy Attorney
If you are considering Chapter 7 bankruptcy, it is in your best interest to consult with an experienced bankruptcy attorney to help you learn your legal rights and options, especially with respect to Chapter 7 bankruptcy.
For more information or to schedule a complimentary consultation with Central Valley bankruptcy attorney Gurjit Srai, please call 209-323-5558, or complete our online form.