Nobody gets excited about the thought of filing for bankruptcy, but in many situations, it's the only way to get out of a financial mess. Many Tennesseans are afraid of bankruptcy, however, because of their pride. To many people, money is their identity. Without it, they have no self-esteem and view themselves negatively. They are afraid that others will view them negatively as well if they file for bankruptcy, since a lack of money often connotes irresponsibility. Bankruptcy is an emotional undertaking, but by understanding the changes that need to be made, those in debt can experience a fresh start, learn from their situation, and ease the stressors affiliated with overwhelming debt.
Before filing for bankruptcy, Tennessee residents must attend counseling. This counseling is mandatory because it allows a credit counselor to assess a person's situation and see if bankruptcy is the right option. Plus, it makes sure that the person understands the ramifications of bankruptcy and will work to prevent it from happening again.
Many Tennessee residents face financial challenges due to job loss, disability, medical bills and unexpected expenses. Although they may do their best to pay their expenses, sometimes they simply cannot get ahead and instead drown in overwhelming debt. Their only option may be to seek debt relief through bankruptcy. Although bankruptcy offers many benefits and is becoming a more popular option among consumers, there is still a stigma attached to it. In addition, many consumers may fear that they will face discrimination for filing for bankruptcy. Is this a valid fear?
Sometimes Tennessee residents face financial challenges, whether through a job loss, unexpected expenses or overspending. This can cause overwhelming debt, which can lead to harassing phone calls from creditors. When it becomes impossible to stay afloat financially, many consumers turn to bankruptcy for relief. There are two options to choose from: Chapter 7 bankruptcy and Chapter 13 bankruptcy. Which one is right for your situation?
When someone asks their parent, grandparent or other loved one to cosign a loan for them, they oftentimes agree. Why? Because family members usually want to help each other out in time of financial need. They don't want to see their child, grandchild, niece or nephew do without a car or student loan for college. But if the person who took out the loan is unable to repay the debt and files for bankruptcy, the cosigner may be on the hook and could even face damage to his or her own credit score. So some individuals may be considering the best way for them to handle this situation.
After spending a significant amount of time together as boyfriend and girlfriend, Tennessee couples may decide to take their relationship to the next level by living together. As if that isn't challenging enough, many couples may also decide to share finances by opening joint credit card accounts. This is a major decision that shouldn't be taken lightly because if one person racks up most of the credit card debt, the other party must still pay for it.
A recent report released by the American Bankers Association found that American credit card usage is up. Yet, the number of people who pay off their entire balances climbed to its highest percentage on record for the last quarter of 2013. The jump, from 28.6 percent to 29 percent, has many economists optimistic that Americans are acting in a more responsible manner with their credit cards. These experts also point to a decrease in delinquencies, with only eight and a half percent of all credit card debt in the first quarter of 2014 being 90 days or more overdue.
Many Tennessee residents may have friends or family members who are in debt and automatically think it's because of poor money management. While this may be true for some consumers, it's not always the case. In fact, many individuals with significant credit card debt are actually frugal spenders and are in their situation due to circumstances beyond their control.
With unemployment common in Tennessee and other parts of the country, many Americans have resorted to living mainly on credit cards, which means dealing with huge amounts of debt. There are many options for reducing debt, but what many people do not know is that before filing for bankruptcy, they can often contact their credit card companies directly and ask for a lower minimum payment, even a lower balance altogether. The trick is knowing how to do it.
Although some Tennessee residents use their credit cards wisely, many tend to splurge on daily expenses. Then, when the bill comes, they can barely make the minimum payment. This leads to a vicious cycle of high credit card debt. Compounding this situation is the occasional emergency - the car breaks down, the dog has to go to the vet or a personal item is stolen and has to be replaced. Because these consumers lack the savings to pay these unexpected bills, they use their credit cards.