In recent years, many Tennesseans have faced unemployment and other financial challenges. When this goes on for an extended period of time, it can force a person to file for bankruptcy. When a person is behind on vehicle payments, the next step is repossession. Nobody wants their car taken away, but fortunately, with quick action, there are ways to stop repossession and keep your car, TV, computer, appliances and other valuable possessions.
Now that the holidays have come and gone, Tennessee residents may be feeling the pinch financially. Christmas spending, along with unemployment, medical expenses and other financial challenges in 2014 may have left their credit cards maxed out. Resolve to pay off credit card debt this year with these tips.
When faced with unemployment or other financial challenges, Tennessee consumers may be unable to pay all their bills on time. This means they are forced to choose which debts are most important and which can wait. However, once a debt becomes 30 days late, consumers may be faced with harassing phone calls from creditors. They may also face foreclosure on their home or repossession of their car. With so many debts, which ones do you pay first?
It's important for Tennessee residents to establish a credit history. Without a credit history, it's difficult to buy a car or house or take out a loan. That is why young adults may turn to their parents to co-sign loans so they gain experience making payments. This can be a good solution if the person has a steady job and can afford to make regular payments. However, life does not always go as expected. A person can suddenly face unemployment, divorce or any other type of emergency financial situation, causing him or her to fall behind on payments. This will then affect the co-signers, who will be harassed by creditors. How can you remedy this situation?
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.
Many Cleveland, Tennessee, residents have had to deal with major financial issues. Unemployment and unexpected medical bills can happen to anyone, at any time. Some people have an emergency fund to help them through these difficult times. Many, however, are not prepared to deal with these unexpected life changes. They end up with unpaid bills and mounting credit card debt. Even if they have jobs that provide regular income, paying off these debts can prove extremely difficult. As a last resort, consumers turn to bankruptcy.
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.
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.