Many people in Texas may feel like the days of the Great Recession are long gone, and they may be right. After all, it sounds like the economy is humming along. Unemployment is down, wages are up slightly and consumers appear to be generally optimistic. Despite that perception, however, many individuals, are still struggling to get by.
Facing overwhelming debt can be terrifying. Not only can it prevent an individual from reaching important milestones, such as buying a house or getting married, but it can also affect one's day-to-day life. Far too often, Texans struggle to make ends meet as they fight to stay on top of their debt. This is simply unacceptable and it's no way to live. That is why these individuals need to carefully consider their debt relief options.
Previously, this blog discussed the difficulties of trying to discharge student debt, and the fact that many older Americans find themselves saddled with burdensome student loans. A new report is again highlighting the financial struggles student loan borrowers are facing.
Although the economy appears to be steadily improving, the stark reality is that many Americans continue to struggle with personal debt. As a result, many are living paycheck-to-paycheck, and any unexpected expense can quickly derail their already tight budget. One option individuals often turn to for assistance in combating these unexpected expenses is payday loans, which can quickly turn into a debt spiral.
Personal debt continues to be a struggle for many Americans, including thousands here in Texas. According to data recently gathered by Northwestern Mutual, the average American had more than $38,000 in debt in 2018. This amount did not include home mortgages. The research also found that individuals are two-times more likely to thousands, perhaps even tens of thousands, of dollars in debt than they do in savings. Only 23% of Americans didn't carry any debt last year.
Student loans have left many Texans struggling to make ends meet. With college costing tens of thousands of dollars, many consider whether it's even worth it. But those who do choose to take on debt to obtain an education can wind up paying on those loans for a significant period of time, even if they are able to obtain good jobs upon graduation.
Recently, this blog discussed a survey regarding credit card debt. It found that about half of all Americans carry a credit card balance from month-to-month. There are many reasons for this, including the sudden onset of a medical condition and the loss of a job. Regardless of the specific circumstances at hand, many Texans who turn to credit cards do so because they are in need of financial resources to cover debts that can't afford. While many make a zealous effort to pay these debts off, the sad reality is that it is often a debt spiral that can quickly get out of hand.
There are many ways that individuals can find themselves saddled with debt. In many cases, though, Texans are forced to turn to credit cards to cover unexpected costs, whether they be car repairs, medical bills or home maintenance. While these cards provide quick access to a line of credit, individuals who use them can find themselves hurtling toward a seemingly inescapable debt spiral.
Far too many Americans struggle with debt. While some of this debt is due to out of control spending, in many instances, it is caused by an unexpected event, such as the onset of a medical condition or the losing of a job. Many people who wind up in this position struggle to try to dig themselves out of the hole, but the financial obligations often prove overwhelming. Bankruptcy provides these individuals with a very real debt relief option. However, many Texans find themselves wondering how it will affect them and their financial health in the future.
Dealing with debt is not easy; however, there are ways and mechanisms one can address these matters. Take, for example, Chapter 7 bankruptcy, This is often referred to as liquidation bankruptcy. This is because the Chapter 7 process requires an individual sell off, or liquidate, a significant portion of his or her assets in order to pay off creditors. There are some exemptions to this liquidation so that debtors don't have to start over from scratch post-bankruptcy. However, as those individuals who successfully complete the Chapter 7 bankruptcy process move on with their lives, they may be surprised to find that they still owe some debts. This is why it is critical to fully understand the effect of a given bankruptcy option before pursuing it.