Financial debt has become commonplace in the lives of many Louisiana residents. Credit cards and how they are used often play a significant role in a person's finances and can easily lead to monetary problems. Luckily, those facing these types of financial issues often have several options for debt relief available to them.
One common cause of debt is lack of savings. People may acquire debt by overspending each month or they may find themselves in dire financial situations due to medical bills or other unplanned budgeting emergencies. To combat issues like these, creating an emergency savings account and continually adding to it can help prevent debt in the future.
For those who are already deeply in debt, other options may be available. One possible solution may be to file bankruptcy. Chapter 7 and Chapter 13 are the two most common forms of bankruptcy filed by individuals. With Chapter 7, assets are liquidated, debts are wiped out and the filer more or less starts over financially. With Chapter 13, the filer uses a payment plan to pay back their debts over a set amount of time decided by the bankruptcy court.
Whatever the situation, those in debt may consider speaking with an experienced Louisiana bankruptcy attorney to begin the process of finding debt relief. An attorney can assess a client's situation to determine if bankruptcy or some other form of debt relief is the proper solution. Discovering more information and comparing the advantages of different alternatives may be the first steps to regaining financial stability.
Source: thestreet.com, "You Have More Credit Card Debt Than Emergency Savings", Jason Notte, May 11, 2017