Debt can accumulate in a multitude of ways, as many Louisiana residents are aware. Some people struggle with overspending, while others may be dealing with a sudden, unexpected expense, such as a medical emergency or loss of a job. Fortunately, there may be multiple options for obtaining debt relief.
In addition to dealing with stagnant wages and rising costs of living, some people also have poor financial habits. The convenience of using credit cards is a big problem for some individuals. Setting rules to avoid overspending and impulse purchasing can be a good start to keeping debt at bay. Others may even find that stopping the use of credit cards altogether and instead using only cash can be helpful, as that allows consumers to physically see how much they are spending at a time.
When sticking to a strict budget or similar tactics are not enough to combat significant debt, stronger measures must be taken. For some, this may mean filing for bankruptcy. Chapter 7 and Chapter 11 are the two most common forms filed by individuals. The first wipes out debts by liquidating assets and imparts an automatic stay that stops creditors from continuing to seek payments. The other allows individuals to retain their assets and pay back debts via a court-approved payment plan.
Deciding which form of bankruptcy to file is a personal choice, depending on the best fit for each situation. Anyone seeking out options for debt relief could consult an experienced Louisiana attorney for more information and assistance. Even those who do not wish to file for bankruptcy may find speaking with an attorney beneficial, as a lawyer could assess the situation to help determine the best course of action.
Source: businessinsider.com, "8 ways to spend less every day, according to financial planners", Holly Johnson, Jan. 16, 2018