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Cincinnati Bankruptcy Law Blog

Bankruptcy: Cutting down on holiday overspending

Many individuals in Ohio and elsewhere may have already begun purchasing gifts to for loved ones during upcoming holiday gatherings. While this is a time for celebration for many families, some consumers might be dreading the following month when they have to take inventory of their recent financial decisions. While some may benefit from seeking advice on how to avoid overspending during the holidays, others might need advice on how to pursue relief from debts through the available outlets, such as bankruptcy.

Overspending is a concern for consumers across the nation and the holiday season may leave many with debts they are still struggling to pay off for months or years to come. Experts advise those who wish to avoid overspending on gifts to work on forming a holiday budget. Even if a person has already started shopping for the holidays, adding up previous purchases and subtracting them from a newly-formed budget can still prove beneficial.

High credit card balances may lead to issues with business debt

While some company owners in Ohio and elsewhere may have the necessary capital to fund all their business endeavors, others might need a little help from time to time. The need for financial aid has led many entrepreneurs to consider opening up a business credit card account. While these accounts may offer the benefit of convenience and a variety of potential rewards, they also come with the potential risk of leading to bouts with business debt.

Business credit cards can offer a variety of benefits to entrepreneurs, and some business owners may carry balances on several accounts at a time. Recent studies indicate that more than half of business owners who apply for similar lines of credit wind up borrowing from the accounts, sometimes on a regular basis. Should the balances on one's business accounts continue to rise, the resulting financial load could become burdensome and leave an owner in search of advice on how to approach the situation.

Can debt collection agencies contact family and friends?

Falling behind on financial obligations can be a stressful and daunting experience. Individuals in Ohio who are constantly struggling with high levels of debt may deal with debt collection attempts every day, and the stress involved with constant calls and letters can be difficult to handle. Unfortunately, this might not only affect the debtor, as collectors may sometimes decide to reach out to one's family members and friends.

Dealing with debt collectors can be stressful enough as is. Although there are regulations that govern how creditors can speak with a debtor, if a collection agency cannot locate a person, it may retain the right to reach out to family members for information. Furthermore, debt collectors can also reach out to one's friends or place of employment, and although there is a limit to what they can say, the process can still be harrowing.

Bankruptcy: Issues with debt can take a toll on one's health

Dealing with debt can be stressful and high levels of debt can have a substantial impact on a person's future. Significant financial struggles can also have an influence on the choices one makes and leave the individual suffering a lesser quality of life for extended periods. Those in Ohio who experience dire monetary concerns may find themselves in need of the relief provided through bankruptcy, but making such a major financial choice can be intimidating.

According to reports, just under 60 percent of those surveyed believed it would take as many as two to three years to pay off their debts. However, some are uncertain if they will ever be free of debt and state that their impending financial concerns are affecting the choices they make. Of those surveyed, a small percentage expressed concerns that issues with debt might affect their ability to have children.

Bankruptcy: Using credit cards to fund holiday travel costs

For many individuals in Ohio and elsewhere, the holiday season is a time to make travel plans to visit family and friends. Although the costs associated with holiday travel can be extensive enough as is, studies indicate that many families will consider using credit cards to cover their traveling needs. Coupling substantial financial obligations with high interest accounts could be a hazardous combination that may leave many in search of the relief provided through bankruptcy.

According to a recent survey, as many as half of Americans plan to spend money traveling to visit family or friends during the upcoming holiday season. Studies indicate that over the holidays, the average family will spend nearly $1,500 on airline tickets and lodging costs. While this might not seem concerning for many families, studies indicate that there are some individuals who are still paying on debts associated with travel expenses from the previous holiday season.

Worst-case scenario: Reasons for foreclosure

You’ve always struggled to manage debt. It's been one of the major stressors in your life and, while you understand that in some cases, debt is necessary, you often feel like you’re barely staying afloat.

You're not alone. It's a stressful way to live, but it's a reality for many people in Ohio and across the U.S. When you live paycheck to paycheck, you don’t have much wiggle room and one minor financial slip can create financial burdens that are difficult to overcome.

Bankruptcy: Personal loans are a growing financial concern

There are a variety of scenarios in which individuals in Ohio and across the nation may consider taking out a personal loan. With lesser interest rates on average when compared to other forms of credit, applying for a loan may seem a preferable option in many situations. However, it is still advisable to use caution when taking out a personal loan, as defaulting on payments could still leave a person in need of the relief provided by outlets such as bankruptcy.

When it comes to debt, the most commonly thought of culprits tend to be credit card and medical bills. However, while these remain a concern for many, experts suggest that personal loans are quickly becoming a major source of financial hardship. In some cases, consumers may be applying for personal loans to help pay down balances on other forms of high-risk debt, but trading one obligation for another might not help if one is unable to keep up with payments.

Bankruptcy: Understanding how debts work and the options for aid

While most individuals in Ohio may consider it preferable to remain financially stable, things might not always go according to plan. Upon encountering periods of severe monetary strain, some may find it difficult just to make a living. Those who are constantly struggling under the weight of debt might wish to know more about how to form a strategy to regain control over their finances and how to know when to pursue relief through the available outlets, such as bankruptcy.

In forming a plan to tackle debt loads, a person might benefit from gaining a better understanding of his or her financial obligations. Since each debt may behave in a different manner, factors to consider may include the interest rates on each account, the frequency in which they are applied and the length of the arrangement. Knowing the details of each obligation could be crucial to developing a strategy to reduce or eliminate account balances.

Bankruptcy: Impulse purchases can add up in a hurry

While many individuals in Ohio have encountered periods of struggle following a sudden and unexpected expense, not all financial concerns happen in the blink of an eye. In many cases, one's debts may simply add up over time, and excessive spending is one of the most common causes of financial strain. One spending habit that experts suggest can prove troublesome is impulsive buying and similar concerns have left many in search of relief through bankruptcy.

When it comes to retail shopping, many companies are constantly developing strategies to increase profits. Some of these strategies are put in place to lure consumers into making impulsive purchases. While a person may normally skip out on adding certain items to the shopping cart, an item that is placed close to the checkout counter or offered at a reduced rate could entice consumers to make purchases they would otherwise avoid.

A short sale could help prevent home foreclosure

Falling behind on mortgage payments due to significant financial struggles can be stressful and harrowing. Similar hardships may leave a homeowner in Ohio in search of guidance concerning the available options. In some cases, a person may wish to explore the potential advantages of a short sale, and while this option might not be ideal, it could be preferable to allowing a home to enter foreclosure.

For individuals who are longer capable of keeping up with mortgage payments, one potential option is to sell the home and pay off the mortgage. However, if the balance on the mortgage is higher than the market value of the home, one might find it helpful to consider a short sale. This consists of selling the home for a lesser amount than what is owed on a mortgage.

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