Debt has become a serious problem for many consumers in Louisiana and across the country. While there may be several possible reasons for these deficits, one of the most common causes is due to the overuse of credit cards. Fortunately, consumers may have multiple options at their disposal for achieving debt relief.
A solid first step for those in debt is to make a list of all credit card balances, taking interest rates and minimum payments into consideration. If the debt is less than 15 percent of one’s income, paying more than the minimum each month can help to decrease the total more quickly. When expenses exceed income, however, other options are likely more viable.
Choosing a debt consolidation that can be paid off through a personal loan or balance transfer credit card may be one option. A debt management plan could be another choice. With this method, a payment plan is created, interest rates are lowered and the debt is typically paid off over three to five years.
If none of these methods can tackle the amount of debt a person faces, bankruptcy may be the best option. Chapter 7 and Chapter 13 are the two most common forms of bankruptcy for individuals. Anyone facing significant debt could consult an experienced Louisiana attorney to determine the best form of debt relief for the particular situation. In addition to helping someone choose an appropriate avenue for financial relief, an attorney could also assist in any future related legal proceedings.
Source: theindychannel.com, “Which way to beat debt is right for you?”, Sean Pyles, Sept. 19, 2017