Many people who file for bankruptcy do so because they can no longer manage their debt. With 80 percent of American households holding some form of debt, many people are "comfortable" with the concept of living in the red.
Americans have grown increasingly comfortable carrying personal debt. From high mortgages, car loans and credit card balances, many are walking a fine line between living a comfortable life and taking a financial tumble. One misstep, one serious illness, lost job or economic downturn and the debt-to-income ratio could fall, tragically, into the red.
Getting behind on payments can make a lot of people feel like the weight of the world is on their shoulders. Matters only get worse when harassing phone calls from creditors start or when the threat of wage garnishment is upon you.