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Cincinnati Bankruptcy Law Blog

Bankruptcy: Reducing credit card debts by seeking guidance

Although there are a multitude of circumstances in which an individual in Ohio could begin to experience monetary hardships, some tend to be more common than others. Recent studies suggest that individuals across the nation carry as much as $527 billion in total in credit card debts, and with interest rates continually on the rise, these numbers are likely to increase. Those who wish to pursue relief from similar financial difficulties could find it helpful to speak with a bankruptcy attorney for guidance on how to achieve their financial goals.

Although a credit card can provide financial assistance under a variety of circumstances, using similar lines of credit may come with a cost. With high interest rates, individuals who carry revolving balances on unsecured accounts can suffer in a variety of ways. A person could attempt to cut down on expenses and make larger payments to these accounts, but such an endeavor can prove challenging, especially for those who are experiencing additional monetary challenges.

Seeking assistance in preventing a home foreclosure

Many individuals in Ohio and elsewhere might approach the prospect of buying a home with nothing but excitement. However, this decision may also bring about financial responsibilities that could prove troublesome should one fall behind on payments. Facing a foreclosure can be an intimidating process, but it may also take time to complete, and a person might be able to take certain actions to delay or prevent it from occurring.

Upon taking out a mortgage, an individual must sign a contract agreeing to pay back the amount borrowed over a given period. While a person may be fully capable of making the necessary payments at the time, unforeseen circumstances such as a loss of employment or medical emergency could complicate matters. Should this person fall behind on mortgage payments, the lender may seek to recover its losses through foreclosure.

Bankruptcy: Reducing debt loads by seeking guidance

With the high interest rates on most credit cards, many individuals in Ohio have experienced the strain of financial struggles. Recent reports indicate that the average household pays amounts in excess of $900 a year in interest alone on revolving credit card balances. Those who struggle with substantial monetary concerns might find it helpful to know how to go about cutting down on debts, and when it could be time to seek further assistance through outlets such as bankruptcy.

As credit card bills and collection statements continue to arrive, one may feel somewhat intimidated by the thought of dealing with debt. However, ignoring these issues will do little to solve them, and studies suggest that the first step to cutting down on debt is to gain an understanding of how much is owed. By confronting financial issues, a person might be able to begin to form a strategy for how to handle debts and pursue a healthier financial future.

What does a vehicle repossession do to my credit report?

If you stop making your car payments, your vehicle will eventually get repossessed. This will involve a repossession agent employed by your lender coming to your home, hooking your car up to a tow truck and taking it away.

It is your lender's legal right to repossess your vehicle if your loan goes into default, but knowing this certainly doesn't make the experience any easier. You will lose your mode of transportation and whatever value you own in the car, and you will also incur other stiff penalties and fines -- not to mention the effect of a vehicle repossession on your credit report.

Debt could prove troublesome for a small business owner

For many small business owners in Ohio and elsewhere, financial difficulties can prove to be a source of stress. Smaller businesses may depend more heavily on a steady flow of income, and should a company experience similar issues, the need to seek guidance could be dire. Should these concerns persist for extended periods, the future of the company could be placed in limbo, potentially leaving a small business owner in search of options for relief.

The ups and downs of profit can have an impact on any business, regardless of whether a company is part of a chain or a privately owned operation. However, without the financial backing of a larger entity, the effects of periods of lesser profit can weigh heavily on a small business. This could lead some owners to take out loans to assist in keeping the company operational, which could only prove to be a temporary solution and lead to further troubles in the future.

Bankruptcy: admitting that debt is an issue and seeking help

Dealing with a substantial amount of debt over extended periods can be stressful and emotionally draining. In some cases, a person may take on debt loads without giving much thought to what it could lead to, only to have a change in circumstances leave him or her facing significant financial hardships. When faced with similar struggles, individuals in Ohio may find it in their best interests to form a plan to deal with debts, and know when it is necessary to seek relief through outlets such as bankruptcy.

Debt is a part of the everyday life of many individuals. It can come in the form of a home or auto loan, or even stem from purchases charged to a credit card account or from a medical emergency. Recent studies suggest that the average amount of debt in each household is just over $137,000, with credit card debts alone reaching above $15,000. These studies also suggest that the first step to overcoming debt is to acknowledge it as an issue.

Bankruptcy may be the healthiest financial option available

There are numerous scenarios in which an individual in Ohio or elsewhere may begin to experience financial struggles. There may also be a multitude of avenues with which a person can seek relief from debts, each of which may offer its own potential advantages and disadvantages. However, certain outlets for relief might not be as good as they seem, and bankruptcy could prove a better path with which to pursue financial freedom.

Upon exploring relief from debts, settlement offers may appear exceedingly enticing, especially at first glance. However, these arrangements could have certain disadvantages that may be easily overlooked, such as those pertaining to taxes assessed on any amounts that are forgiven in the process. The amount agreed upon in a settlement offer could also be deceiving, as this process could take numerous years to finalize, and interest rates and fees could leave a person paying nearly the full amount of original debt owed.

How can I get my credit situation under control?

The causes and reasons for credit card debt troubles are many and varied, but the symptoms are always the same -- not having enough money to pay your credit card in full each month. If you combine this kind of situation with a family emergency that requires a large expenditure of cash, you can see how things can quickly get out of control.

No matter how you got there, if you can't get out of credit card debt, this article offers advice for solving your debt problem.

Bankruptcy: Post-holiday debt could lead to financial struggles

Many individuals in Ohio and elsewhere may have chosen to celebrate the holidays by providing each of their loved ones with a multitude of gifts. While at the time a similar decision may have been fulfilling, when the bills begin to arrive, some may find themselves facing a substantial amount of debt. While in some cases, similar financial troubles may only be temporary, should they persist, an individual may find it advisable to seek guidance on the available outlets for debt relief, such as bankruptcy.

According to reports, the average amount of debt taken on by each individual over the recent holiday season was just above $1,000. While some may have chosen to pay for their gifts up front, others might not have possessed the necessary savings to do so. This likely led many to turn to credit cards, and nearly half of those surveyed suggested they wouldn't be able to pay off their holiday debt for several months.

Bankruptcy and the impact debt can have on one's credit score

Constantly dealing with overwhelming amounts of debt could have a substantial impact on a person's quality of life. Many individuals in Ohio who experience prolonged periods of financial hardship may wish to pursue relief through bankruptcy, but they may have concerns about the impact it will have on their credit score. While filing for bankruptcy will inherently affect this area of life, it may still be the healthiest financial choice available.

Filing for bankruptcy is a major financial decision that requires a great deal of thought. A bankruptcy will remain on a person's credit report for as many as 10 years depending on the chapter that is filed. While a similar decision may have an impact on one's credit score, those who are struggling to keep up with monetary obligations may already be experiencing a similar outcome or worse.

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