Wage Garnishments can be the kiss of death for consumers who are already barely scraping by. If your wages have been garnished and you feel like you are in this category, do not despair, you are not alone. It turns out that 80% of the employees in the United States are living paycheck-to-paycheck, and there isn’t anything left at the end of the month.
Creditors who are trying to collect on past due accounts or have a judgement against you will often attempt to collect on those debts through wage garnishment. Depending on the type of debt, wage garnishments can take one-quarter or 25% of your base take-home pay. This is the amount your employer will send to your creditor, and you’ll end up with the rest – a much skinnier paycheck. Problem is most people can barely make it on their current take-home pay, so taking 25% will cause a cascading effect, meaning you won’t be able to pay your other bills or worse, have no money left for food.