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Wage Garnishment Crisis: America's Silent Pay Cut Hits Millions

Wage garnishment affects 4M Americans in 2025, with student loans driving the crisis. Learn how paycheck deductions impact families and the economy.

Wage garnishment represents a critical financial threat that directly impacts household stability and economic mobility. For millions of workers, these paycheck deductions mean the difference between covering basic necessities like rent, food, and medical care versus falling into deeper financial distress. The disproportionate impact on middle- and lower-income families, particularly communities of color and single-parent households, exacerbates existing economic inequalities and creates generational financial challenges. Beyond individual hardship, widespread garnishment affects workplace productivity and employee retention, creating broader economic consequences. As living costs continue to rise, understanding and addressing wage garnishment becomes essential for protecting financial security and preventing vulnerable families from slipping into poverty.