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Lack of financial literacy could lead to bankruptcy

| Jan 28, 2019 | Chapter 7 |

Though finances are a part of everyday life, many Louisiana residents and those elsewhere may not fully understand their financial situations. Unfortunately, this lack of knowledge could result in their facing serious money issues, including considerable debt. It is not unusual for a lack of financial literacy to contribute to the need for bankruptcy.

Understanding how to responsibly handle money and spend within the bounds of a person’s income can make a considerable difference in an individual’s financial situation. Of course, not everyone learns how to do this or knows how to learn about their finances. As a result, they may end up overspending and relying on credit cards. They may also not understanding their credit scores and overall having a less-than-stellar financial record.

When it comes to credit card use, carrying balances can be a major debt issue. Paying bills in full and on time not only keeps spending under control, but it also helps build credit. Of course, some people may need credit cards to hold them over during an emergency situation, and before they know it, their debt could accumulate to an amount that they cannot handle.

Most people want to handle their finances correctly but just do not know how. Unfortunately, this lack of knowledge can easily lead to insurmountable debt problems. Luckily, the story does not have to end there as many Louisiana residents may qualify for debt forgiveness through bankruptcy. This legal process may help interested and qualifying parties get their finances back on track while also allowing them to learn more about financial literacy through programs like credit counseling.

Facing Overwhelming Debt?