Many consumers in Louisiana may be facing overwhelming debt. Whether due to medical debt, credit cards or any other payments, this can become a serious problem when not properly dealt with. In addition to putting a strain on finances, severe debt can cause increased amounts of stress on a person as well. However, those facing this financial struggle may have several options available to provide debt relief.
In many cases, finding a way to efficiently pay off the debt may be the preferred method of relief. Knowing and paying off the bills with the highest interest rate may help to clear out bigger debts earlier. Making sure to always make at least the monthly minimum payment can help to keep interest rates down. Budgeting is another way those in debt may be able to reduce payments. Taking all necessary expenses into consideration and creating a limit based on income could help sort out finances.
Sometimes bills become too much to handle, however. In situations like this, other forms of relief like bankruptcy may be a better option. The two most common forms that individuals typically file are Chapter 7 and Chapter 13. Under Chapter 7, an individual's unsecured debts are wiped out and their nonexempt assets are liquidated. With Chapter 13, assets are generally retained and a court-approved payment plan is created to help pay off debts efficiently.
Whether a person decides to file for bankruptcy or chooses another avenue for debt relief, consulting an experienced Louisiana attorney may be beneficial. An attorney could assess a person's finances to help determine the best course of action for regaining financial stability. Additionally, an attorney could assist with any potential legal proceedings an individual may face in the future.
Source: wpxi.com, "10 tips to become debt-free as quickly as possible", Charis Brown, Aug. 2, 2017