Prevent Bankruptcy By Seeking Help Through A Non-profit Debt Counselor
For many Americans, it is believed that the people who file bankruptcy are irresponsible with money, which all filers are living outside of their means and flat out refuse to make bill payments. While there are unfortunate cases in which these instances have been found to be true, the majority of Bankruptcy causes are uncontrollable. There are seven main factors that can lead to a person filing bankruptcy.
The seven main factors are listed from the main cause to the least likely cause of bankruptcy. Credit card debt is the most likely cause of bankruptcy at a 67% cause rate. The loss of a job or a decrease in pay carries a 50% rate for bankruptcy. Poor financial management is rated at 37%. Medical bills are said to be half out of 1.5 million bankruptcies. Three quarters of individuals who file bankruptcy due to medical bills or health issues are insured. Medical causes carry a 28% cause of bankruptcy. For those who encounter business trouble there is a 15% rate of bankruptcy. Divorce carries 13% and legal bills and lawsuits combined carry 12%.
These percentages show the true factors for most bankruptcies are not at the fault of the filer. Unfortunately even when finances are managed frugally, bankruptcy can still be forced to occur. It is very important in prevention of bankruptcy to properly plan your finances and create a budget that you can live within. Make bill payments on time and pay credit card payments on time as well. By doing so you lower your risk of having to file bankruptcy at all.
Non-profit debt counselors are well-trained and experienced professionals who help those who are struggling with severe debt and financial struggles. They do this as a free service to help debtors regain control of their finances and to pay off their debtors. This program is not a loan but an education based program.
Tools and courses are provided to assist debtors in creating either a repayment plan or a debt management plan. These debt counselors review your personal situation to help provide you with the most beneficial program. They research your credit report, your average income, your assets and your debts. Once this information is gathered, the plan that is most suitable will be discussed with you entirely. You will know the advantages and disadvantages of the plans offered so that you can choose the plan that will best help you regain control over your finances.
Debt counseling does not just provide a band-aid for your debt trouble like bankruptcy can. Instead it heals the problem at the source. You are provided with tools to help you to get out of debt and stay out of debt. Bankruptcy can discharge your debts immediately for a fee, but further in the future your debt troubles can easily return.
There is numerous non-profit debt counseling services available to you. To find a representative in your area the most helpful tool is the Internet. You can find services that can help you online and over the phone. They are there to help you in any way possible. The help is available to relieve you from stress and financial chaos. All you have to do is click or call and you will be on your way to a fresh start with your finances.
Tags: Bankruptcies, Bankruptcy Credit Card, Bankruptcy Due To Medical Bills, Bankruptcy Help, Bill Payments, Credit Card Debt, Credit Card Payments, Debt Counselor, Debtors, Filer, Filers, Filing Bankruptcy, Financial Management, Health Issues, Legal Bills, Medical Causes, Non Profit Debt Counselors, Program Tools, Three Quarters, Unfortunate CasesWord Count:Article Body:
In the past, credit card payments have always been fair, a small percentage of the total balance owed. A new change has recently been proposed by the government that may change this. The monthly credit card payments that people are making may double within the next year. This will make things much harder for people who are already having a hard time making their existing payments.
How Much You Will Now Need To Pay
The credit card companies have made large profits by allowing people to make small payments on their credit card balances. The interest rate on credit cards has gone as high as 20%. At this rate, it can take a person years to pay off debts that are just a few thousand dollars. It does little good to make only the minimum payments on your credit card each month. Because the average American owes about $10,000 in credit card debt, their monthly payments are about $200. The new proposed law would push this amount to $400, including interest.
The law proposed by the federal government has been in existence for two years, but companies have been given a set period of time to comply with the law. It is expected that lenders will raise the payments to 4% before the end of this year. At first glance this may seem like a small amount, but it will dramatically increase the monthly payments of those who owe thousands of dollars. Many people have already begun filing for bankruptcy. You are probably wandering what you should do in a situation like this.
If You Cant Pay
The first thing you can do is stop using your credit cards. It doesn’t make much sense to keep using it when the minimum payments are about to be increased. After this you will want to begin cutting back on bills that will keep you from being able to make your monthly payments. If you have equity in your home, you will want to use it to consolidate your loans if possible. An unsecured personal loan can also be helpful. It may also be possible to get a lower interest rate from your bank.
Theres No Going Back Now
One thing you have to understand is that when the minimum payments increase, they are not likely to come back down. While this will allow some people to pay off their debts faster, many more people will not be able to pay off their loans, and will be forced to file bankruptcy. Some people believe that such a law will hurt the economy, because by raising the cost of the minimum payments you will decrease the purchasing power of the citizens.
Financial Freedom is the Key
It is best to get out of debt in anyway you can, or reduce your interest rates. If you don’t have a credit card, you may want to avoid getting one. You should sit down and be honest with yourself to decide if you’re responsible enough to manage one. If not, it is best to use cash. It has become more difficult to get out of debt than ever before, and this will not change in the future. It is important for you to take the steps today that can allow you to reduce your financial burden. You should stop using your credit card as soon as possible.
On a Personal Note Living In Never Never land
Many experts have argued that increasing the monthly payments on loans will help people and I for one must agree with that. Even at this increased amount consumers will be paying an exorbitant amount in interest and fees given the average balance of an Americans credit card statement. These high interest-charging credit cards have been sucking the money from many of us who are blissfully unaware of the financial damage that they are causing. Short-term financial strain in increasing these minimum payments may be the best long-term strategy to find the growing debt problem in the US. A change in attitudes by many of us would also be a start of a brighter financial future.
Tags: Article Body, Credit Card Debt, Credit Card Payments, Credit Cards, Debts, Existence, Federal Government, Filing Bankruptcy, Filing For Bankruptcy, First Glance, Hard Time, Interest Rate, Lenders, Minimum Payments, Period Of Time, Profits, Thousand Dollars, Thousands Of Dollars, Unsecured Personal Loan, Word CountIf you have credit card debt it is important to take its measure from time-to-time to determine whether or not you have a problem with your debt. If you are carrying a balance on more than one card (or simply a sizable balance on one card) then you could have a problem.
There are five reasons why you should seek credit help to deal with your credit card debt.
The biggest reason is that credit card debt can affect your credit score which in turn impacts your ability to borrow money for everything from your car to your home. High credit card debt can lower your credit score and raise your interest rates. A problem with late credit card payments or high amounts of debt can make you appear to be a poor risk for credit to many finance companies.
However, almost as important is the way that credit card debt makes you feel. While money cannot buy happiness, credit card debt certainly buys unhappiness. The knowledge that you have a large debt can destroy your self esteem and add a lot of stress to your life. If you dread the arrival of the credit card bill in the mail then you have a problem with debt that you need to address. Owing money can also add a lot of pressure and stress on a marriage.
Another important reason to resolve your credit card debt is that by avoiding the problem or simply paying minimum amounts you will never be free. Most minimum payments do not do much more than pay for the interest. While many people make paying their credit cards a low priority it should actually be a top priority. Yes, your mortgage payment is important because you do not want to lose your home but that is good debt as it helps your credit rating and your taxes. Credit card debt does nothing for you at all.
Owing money on your credit cards is also a self perpetuating problem. Every time you charge instead of paying with cash and every time you do not pay off the full balance when it comes due you are perpetuating your problem with debt. You need to learn better money habits or you will never solve your problem with credit card debt.
Finally, an important reason to start paying with cash, check or debit card is that by paying-as-you-go for your lifestyle you will be modeling responsible behavior for the next generation.
Take these five reasons to heart and take stock of your own financial situation to determine whether or not you have a credit card debt problem.
Tags: Credit Card Bill, Credit Card Debt, Credit Card Payments, Credit Cards, Credit Rating, Credit Score, Dread, Finance Companies, Interest Rates, Mail, Marriage, Minimum Payments, Money Cannot Buy Happiness, Mortgage Payment, Owing Money, Poor Risk, Self Esteem, Stress, Top Priority, UnhappinessIf you have credit card debt it is important to take its measure from time-to-time to determine whether or not you have a problem with your debt. If you are carrying a balance on more than one card (or simply a sizable balance on one card) then you could have a problem.
There are five reasons why you should seek credit help to deal with your credit card debt.
The biggest reason is that credit card debt can affect your credit score which in turn impacts your ability to borrow money for everything from your car to your home. High credit card debt can lower your credit score and raise your interest rates. A problem with late credit card payments or high amounts of debt can make you appear to be a poor risk for credit to many finance companies.
However, almost as important is the way that credit card debt makes you feel. While money cannot buy happiness, credit card debt certainly buys unhappiness. The knowledge that you have a large debt can destroy your self esteem and add a lot of stress to your life. If you dread the arrival of the credit card bill in the mail then you have a problem with debt that you need to address. Owing money can also add a lot of pressure and stress on a marriage.
Another important reason to resolve your credit card debt is that by avoiding the problem or simply paying minimum amounts you will never be free. Most minimum payments do not do much more than pay for the interest. While many people make paying their credit cards a low priority it should actually be a top priority. Yes, your mortgage payment is important because you do not want to lose your home but that is good debt as it helps your credit rating and your taxes. Credit card debt does nothing for you at all.
Owing money on your credit cards is also a self perpetuating problem. Every time you charge instead of paying with cash and every time you do not pay off the full balance when it comes due you are perpetuating your problem with debt. You need to learn better money habits or you will never solve your problem with credit card debt.
Finally, an important reason to start paying with cash, check or debit card is that by paying-as-you-go for your lifestyle you will be modeling responsible behavior for the next generation.
Take these five reasons to heart and take stock of your own financial situation to determine whether or not you have a credit card debt problem.
Tags: Credit Card Bill, Credit Card Debt, Credit Card Payments, Credit Cards, Credit Rating, Credit Score, Dread, Finance Companies, Interest Rates, Mail, Marriage, Minimum Payments, Money Cannot Buy Happiness, Mortgage Payment, Owing Money, Poor Risk, Self Esteem, Stress, Top Priority, Unhappiness