Many Tennessee residents become overwhelmed with credit card debt. When they can't keep up with the monthly payments, they may choose bankruptcy. Many people are aware of what bankruptcy does, but don't really understand how it works. Read on to find out what the process entails.
Even though the once struggling economy is slowly starting to pick up, many Tennessee consumers still struggle with debt. They may be unemployed, working only part time, or unable to pay off the mountain of credit card debt they owe, whether it be from medical expenses or poor financial choices. To obtain debt relief, many choose to file for bankruptcy. Bankruptcy is often seen as a cure-all, but is it really the right choice? Discover the myths - and the truth - behind the bankruptcy process.
Bankruptcy is a situation that can befall anyone. Even some of the biggest celebrities have struggled with money issues. Although a bankruptcy is beneficial for Tennessee residents with mountains of debt, such a process should not be taken lightly. One may wonder what situations warrant a bankruptcy.
Overwhelming debt is a major concern for many Tennessee consumers. Unexpected expenses, such as medical expenses, can cause a major dent in one's wallet. To start anew, many consumers turn to bankruptcy. While bankruptcy is an effective way to quickly eliminate debt, it can cause much damage to a once-excellent credit score. There is also a stigma attached to it, which is why many people attempt other options first. What exactly are your other options for debt relief?
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.
With many Tennessee residents still struggling with the effects of the fluctuating economy (unemployment, credit card debt, inflation and growing medical expenses), one would think that Americans would be more inclined to save money. Instead, many continue to keep on spending money they do not even have. This leads to an increased rate of personal bankruptcies not just a couple hundred or thousand, but possibly millions, if Americans continue to overspend.
Different options are available through the legal system to help individuals eliminate debt and enjoy a fresh financial start.
Although all Tennesseans are now allowed access to health insurance due to the Affordable Care Act, their financial problems are not necessarily solved. Although insurance pays for a large portion of one's medical expenses, it doesn't pay for everything. Co-pays and coinsurance must be paid out of pocket, which means that many Americans are left with medical expenses totaling thousands of dollars. It is expected that soon, medical expenses will be the most common reason for bankruptcy, beating out mortgage debt and credit card bills.
Many Tennessee residents have heard stories of celebrities and others with significant wealth filing for bankruptcy. For some, it may be hard to understand how someone who makes millions of dollars a year can end up broke. However, it is often the same issues that can plague both those with significant assets and those without. Regardless of the reason, however, bankruptcy can be an option for all people facing mounting debt.