If you find that your credit card debt is spiraling out of control, you may be weighing your options. While you might ultimately need to file for bankruptcy or pursue credit counseling, working on your spending now is still recommended to ensure your correct any bad habits. RealSimple.com offers the following tips to help you eliminate debt and seek out a responsible financial future.
Try to get a lower interest rate
For the vast majority of American’s, debt is the price of admission to the American Dream. From a young age, we are sold the idea that financial stability in the future is not possible without an astronomical investment in your education today. College is thought to be the prerequisite for success in life. For that ray of hope, many American’s sign over responsibility to a form of debt that has astoundingly high interest rates and is unshakable, even in cases of extreme financial hardship or bankruptcy.
Student loan debt in the U.S. stands at a collective $1.5 trillion split between 44 million people, according to Forbes. That amount has doubled over the past decade and isn’t going anywhere but up. This leaves many students shackled to their debt for the foreseeable future.
Filing a bankruptcy petition can be tough for anyone, but some people face an especially difficult time when it comes to the bankruptcy process. For example, those who have complex financial circumstances may be unsure of which route to take or how bankruptcy will affect their finances. This is often especially true for someone who has never filed for bankruptcy before. If you are planning on going through bankruptcy for the first time, it is pivotal to be fully prepared.
Assuming that you have thoroughly compared all of your options and determined that Chapter 11 is the most sensible course of action, you should have confidence in your decision to move forward with a bankruptcy petition. It is normal to feel uneasy about this process, but you may be able to get rid of your concerns by carefully considering all aspects of your case beforehand. If you have questions about certain aspects of the Chapter 11 process, do not hesitate to look for answers. We know that bankruptcy can be concerning from a financial and emotional point of view, but many people have been able to completely turn their lives around by eliminating debt through bankruptcy.
With summer coming to a close and fall starting up, there are certain things individuals may want to give some extra attention. This includes their financial affairs.
While summer can be a lot of fun, it can also be expensive. According to a recent survey, the vast majority of Americans (87 percent) indicate that the summer months are when they spend the most on socializing.
Accruing thousands of dollars in debt due to credit card charges, medical expenses and mortgage payments may directly cause significant health risks. Owing unsecured debt, or debt detached from specific property, potentially results in feelings of hopelessness and uncertainty among its victims. As it worsens the health of aging adults, debt may ultimately shorten your lifespan.
Bankruptcy could provide potential monetary relief to consumers, and it may just save your life.
Going through prolonged periods of financial strain can be stressful under any circumstance. Unfortunately, it may take little more than a single medical emergency or sudden change of employment to leave a person facing high amounts of debt. For individuals in Maryland who are able to pay certain amounts of debt but are struggling under the overall weight of financial obligations, a wage-earner plan could help them pursue a healthier financial future.
One major concern for many who consider bankruptcy as a viable option may pertain to the liquidation of assets. However, unlike Chapter 7 bankruptcy, Chapter 13 may allow a person to maintain possession of all his or her assets while repaying certain amounts of debt over a given period of time. To be eligible for a wage-earner plan, a person may need to show that his or her income is sufficient to make the required payments according to schedule.
For small business owners in Maryland and across the nation, the success of their companies could have a significant impact on their lives. Periods of financial struggle can be challenging for owners, and if these issues persist, the future of an enterprise could be placed in jeopardy in the process. To protect a company, a small business owner may find it beneficial to know the steps to take to address monetary struggles, as well as the available options should debts become an issue, such as reorganization through Chapter 11 bankruptcy.
There are a variety of scenarios in which a small business could experience financial concerns, ranging anywhere from drops in revenue to overspending on operations. The first step in addressing these issues is to acknowledge their presence and identify the source. If operations are a concern, an owner could consider addressing any inefficient manufacturing processes and making the necessary adjustments.
It is no secret that dealing with substantial amounts of debt can be a harrowing experience. For individuals in Maryland who are closing in on retirement, financial struggles could pose a significant threat to future plans. Those who are facing similar issues might find it advisable to speak with a consumer bankruptcy attorney for guidance on the potential risks of dealing with debts late in life and the available options with which to pursue relief.
According to a recent survey, more than 80 percent of workers who are closing in on retirement age are carrying some form of debt. Although their financial concerns may take numerous forms, the most common issues they face pertain to mortgages, auto loans and credit card bills. In addition to the stress involved with dealing with high amounts of debt, those who face significant monetary burdens could be less capable of saving for life after retirement.
For many consumers in Maryland and across the nation, the convenience and possible rewards involved with using a credit card for purchases may appear enticing. However, with high interest rates and substantial penalties on late payments, there may be some inherent disadvantages to using a similar form of credit. Credit card debt remains one of the leading causes for financial struggles, and similar concerns have led many to pursue relief through consumer bankruptcy.
While a person can use a credit card to purchase nearly anything, financial experts suggest that certain transactions should be avoided at all costs. For instance, those who owe money during tax season could consider using a credit card to cover the bill. However, with high interest rates on most credit accounts, a personal loan could be a much more viable option in times of financial need.
Many companies in Maryland and elsewhere may attempt to provide consumers access to a variety of product brands, some of which could prove less profitable than others. When a business begins to experience significant financial issues, it may seek to regain financial stability by selling the rights to certain brands, but this might not always solve the issues. After reportedly experiencing similar hardships, the apparel company Nine West has filed a petition to pursue reorganization through bankruptcy.
According to reports, Nine West provides clients with access to a variety of brands of clothing and accessories. However, the company asserts that certain products have proved less profitable than others, and that substantial amounts of debt have left it in search of financial relief. By filing for Chapter 11 bankruptcy, the company is reportedly seeking to sell the rights to certain products and work back toward financial stability by focusing on its more successful products.
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