In essence, credit is a trust that allows businesses to trade with each other on…
There are few worse feelings in life than being unable to pay your bills. Failure to make credit card or other loan payments can lead to nonstop collection calls, wage garnishment or a reduced credit score. What are some tips that you can use to help you get out of debt this year?
Take An Honest Look At Your Financial Picture
The first thing that you should do is take a look at your current financial situation. Doing so will help you figure out how much money you owe, who you owe and whether you have any assets that you can use to help pay those debts. From there, you should decide where you can cut expenses, how you can increase your income and if your creditors may be willing to forgive a portion of your debt.
Is Bankruptcy The Key To A Fresh Financial Start?
The word bankruptcy may conjure up thoughts of being homeless or penniless. However, bankruptcy can actually be a great way to clear some or all of your debt and start over with a clean slate. While filing for bankruptcy stays on your credit report for up to a decade, it generally only precludes you from getting credit for the first year or two. If you file for Chapter 7 bankruptcy, your debts may be discharged immediately. A Chapter 13 bankruptcy allows you to pay your debts over time, and it may be ideal for those who want to keep their house from being foreclosed on. If you plan on filing for bankruptcy, get the help of a professional, like those at Demers Gagnier Inc., to make sure you understand exactly what you are doing.
Get Help From A Financial Expert
If you are struggling to decipher your credit card statements or need help creating a financial plan, it may be a good idea to talk with a financial expert. A professional may be able to help you make sense of your debt and how to pay it off as quickly as possible. It may also be possible to learn more about the effects of compound interest and how saving even a few dollars a week can help you secure your financial future after your debt is paid off.
If you feel like all of your money is going to creditors, now is the time to chart a path to financial freedom. Even if you have to resort to bankruptcy, it can help you reduce or eliminate your debt in a timely manner. Once your debt is paid off, you won’t have to worry anymore about losing your home or other unexpected interruptions to your life because of unpaid bills.
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