Wage garnishment, a method creditors use to collect unpaid debts, is becoming more common as credit card balances reach record highs and more people struggle to make payments. This process involves a portion of a person’s paycheck being withheld to pay off debts, which can severely impact their ability to cover essential expenses like rent and groceries. Although federal law limits the amount that can be garnished, even a reduced paycheck can strain an already tight budget. To address this, individuals can take steps such as claiming an exemption if their garnishment exceeds legal limits or if they face financial hardship. Certain incomes, like Social Security benefits, are generally protected from garnishment. Acting quickly is crucial to avoid further financial trouble, such as missed payments or additional legal actions.
QUESTION: How might increasing wage garnishments impact individuals’ ability to manage their finances and plan for the future?
What to do if wage garnishment makes your bills unaffordable
