The Federal Reserve says credit card debt was second on the list of consumer debts in 2014. Financial advisors also say that a significant number of consumer bankruptcy filings involve overwhelming credit card debt nationwide, including in Louisiana. They say the reason for this is consumers forgetting to manage their credit card use. Reportedly, most users are not as careful when using their credit card as they are when spending cash. Very often, this results in the consumer becoming overwhelmed by debt.
Louisiana consumers may find themselves with unanticipated financial problems after the holidays. Those who navigated their holiday spending without a budget may wonder to where all the cash went, and from where all the debts came. One option is to seek advice from an experienced bankruptcy attorney to get back on track in the New Year.
As we get older, bankruptcy seems more like a scary, end-of-the-world option. We start to wonder how we can possible start over. It was easier when you were in your twenties, and maybe even thirties. It seemed liked you had all the time in the world.
Louisiana consumers with credit card debt who suffered job losses, wage cuts or other financial emergencies will likely be looking for methods to remedy their dire situations. Different debt relief options may suit the circumstances of some, but none of them is a quick fix. Careful consideration is necessary because the chosen method may cause even more hardship as time goes by, and to compare the available options with the protection offered by the U.S. Bankruptcy code may be informative.
Many families nationwide, including in Louisiana, have high levels of credit card debt. Some land in a spiral of debt that can become overwhelming, but many consumers will avoid filing for bankruptcy at all costs. If credit card debt payments go unpaid for three months, the lenders will likely hand the debt over to a collection agency. The debt collectors may expose the consumer to all kinds of harassment.
When a small business in Louisiana experiences cash flow problems or other financial hardships, the owner may be researching the best way to handle the situation. There are bankruptcy options to consider, and the choice of Chapter 11 or Chapter 7 bankruptcy may depend on the owner's intention to close the doors of the business or to try to save it. To make this choice, comprehensive information about the available options is necessary.
Louisiana consumers who have experienced bad times may have accumulated debts that they cannot settle. This may be through job loss, medical expenses or other unanticipated circumstances. With unpaid debts come the harassment typically dished out by debt collectors. Although the Federal Trade Commission protects consumers, not many know that filing for bankruptcy can put a stop to creditor action.
Louisiana consumers may consider refinancing their credit card debt by obtaining a personal loan. It makes sense because that will mean the consumer can make one monthly payment at a particular interest rate rather than multiple payments at different interest rates. However, there are issues to consider before taking such a step, and comparing it to the advantages of filing for bankruptcy may be appropriate. The first thing to look at is the overall savings a personal installment loan offers -- including any origination fee, which could be between 1 and 5 percent of the total amount.