Common reasons why consumers struggle with debt

On Behalf of | Sep 16, 2022 | Bankruptcy |

At some point in life, most people will struggle with their finances. You may be one who is having a difficult time paying your bills, and you could be watching your outstanding balances continue to accumulate. As you juggle payments, cut corners and face compounding interest, you may decide that you are no longer able to manage matters on your own. At this point, you may benefit from considering bankruptcy.

Bankruptcy is a beneficial option for many consumers who are facing a significant amount of debt. Depending on the specific types of balances you owe and other factors, you may be able to pursue protection through Chapter 7 or Chapter 13 bankruptcy. This is a prudent choice for those who accumulated debt, often for reasons that they were unable to control. By making this decision, you could be regaining control over your financial future.

You are not alone

Struggling with debt is not an uncommon problem. Life is unpredictable, and it is often the unexpected situations that result in a rapid accumulation of debt. Every situation is unique, but some of the most common reasons why people often find themselves unable to pay off their balances include the following:

  • Divorce — The end of a marriage can be costly, and it can require a division of savings and personal property.
  • Illness or injury — An emergency situation can lead to lengthy hospital stays, expensive medical bills and long-term health needs that will also be costly.
  • Failure to budget — There are times when basic financial mismanagement can, over time, lead to serious debt problems.
  • Credit cards — Credit card debt is one of the most common reasons for financial struggles, and they can be difficult to pay off due to accumulating interest.
  • No savings — Consumers who do not have a savings account may be unable to manage unexpected expenses, resulting in a reliance on credit and accumulation of debt.

Bankruptcy may not be your first choice, but it could be the ideal way to secure your financial future. Regardless of why your debt problems began, you can take steps that will help you find a way out. Through this process, you can confront certain types of balances once and for all, make creditor harassment stop and halt all collections proceedings against you. Chapter 7 or Chapter 13 bankruptcy may be the ideal path to better finances and more peace of mind.

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