There are many reasons Louisiana residents may be facing financial hardships. One of the top reasons is often due to credit card debt. Luckily, those who are dealing with this problem may still have several debt relief options available. Among other solutions, bankruptcy could provide relief for some to begin regaining financial stability.
The Federal Reserve recently released new data indicating that Americans have surpassed $1 trillion in credit card debt. While this can be good news for the economy, it may be a bad sign for those who cannot immediately pay off their debt. Some may be able to begin paying off smaller debts and continuously increase their payments until they have paid off all their debts. Others may prefer to pay off the minimum balance of debts with the highest interest rates first while paying any extra they can afford.
When credit card debt has become too much to easily pay off, those in debt may want to consider bankruptcy. The two most common forms of bankruptcy are Chapter 7 and Chapter 13. In Chapter 7 bankruptcy, all assets are liquidated, and an automatic stay is put in place that stops creditors from attempting to collect payment. With Chapter 13, those in debt can create a payment plan to fulfill within around three to five years.
Louisiana residents worried about their financial futures may consider consulting an experienced bankruptcy attorney. An attorney could provide more information on the different forms of bankruptcy to those interested in securing debt relief. In addition, a lawyer could assess individual situations and determine the best solution to regaining financial stability for each client.
Source: cnbc.com, "How to pay off credit card debt", Emmie Martin, April 14, 2017