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Knoxville Bankruptcy Law Blog

Debt relief: Financial concerns could affect one's health

It is no secret that dealing with debt can be a stressful process. However, some individuals in Tennessee may find it a surprise to learn that financial challenges can also have a substantial impact on the decisions they make and can even affect their health. Those who wish to avoid similar challenges could benefit from seeking guidance on their available options for debt relief, but with a multitude of options to pick from, choosing a path can be intimidating.

With common concerns ranging anywhere from credit card bills to personal loans, many consumers have experienced the trials of dealing with debt. Results from a recent survey indicated that just under 60 percent of consumers worry that it may take as long as three years to pay down their debts. While this could be alarming enough as is, some of those surveyed almost admitted they feel they may never be able to escape debt.

Overcoming reservations in filing for Chapter 7 Bankruptcy

There are many families in Tennessee who are constantly struggling under the weight of overwhelming amounts of debt. In the pursuit of relief, some may wish to explore the benefits of filing for Chapter 7 Bankruptcy, but they might have concerns that the process will only make matters worse. However, such concerns might be unnecessary, and those who file for bankruptcy might be able to begin rebuilding their credit shortly after the process is completed.

When it comes to filing for bankruptcy, many may worry that the process will have a detrimental impact on their credit scores. However, recent reports suggest that more than 40 percent of those who file for bankruptcy were able to bring their scores back up to over 640 just one year after the process was finalized. Experts also indicate that after only three years, some were even offered lines of credit with interests rates that were similar to those offered to individuals who did not have a bankruptcy on record.

What would consumers give up in exchange for debt relief?

Dealing with the burdens of debt can be a harrowing process. With credit card debts surpassing the $1 trillion mark, it is an unfortunate reality for many individuals in Tennessee. Financial struggles can have a devastating impact on one's life and leave a person in desperate need of debt relief. Recent studies indicate that consumers would go to great measures to obtain relief, but some of these measures may be unnecessary.

Results from a recent survey indicated that more than 30 percent of consumers would consider giving up access to social media outlets for up to a year in pursuit of debt relief. Some even went as far as claiming they would give up the family pet for financial stability. Although it might seem extreme, nearly 7 percent of those surveyed also stated they would give up a kidney if it meant all their credit card debts would be eliminated in the process.

Debt relief: Placing a low priority on debts can be risky

The financial expectations and priorities of individuals in Tennessee may differ, depending on their age. For individuals in certain age groups, such as millennials, paying down on debts might not always seem a high priority. However, carrying substantial amounts of debt for prolonged periods could be risky and may leave a person one emergency away from a financial disaster. Those who experience similar challenges may benefit from seeking guidance on the available outlets for debt relief.

According to recent studies, the average millennial carries as much as $36,000 in debt. While this number is similar to the average for other age groups, experts suggest many younger individuals place a low priority on paying off debts. Instead, studies suggest their priorities lie in saving up for special occasions such as a wedding or preparing to purchase a home.

Credit card debt: Tips for first-time cardholders

Many individuals in Tennessee and elsewhere may be aware of the inherent risks of applying for and using a credit card. However, first-time card users might lack the necessary knowledge or experience to know how to use these accounts wisely. Experts suggest there are certain mistakes new cardholders make that could increase the chances they will experience issues with credit card debt.

One possible mistake new cardholders might make pertains to overcharging. Just because one obtains a high credit limit on a card doesn't necessarily mean a person should rack up purchases he or she can't afford. Experts suggest that first-time cardholders should focus on paying accounts off in full each month, as this could be key to preventing balances from growing out of control.

When you file Chapter 13, you must also pay your taxes

According to the Internal Revenue Service, Chapter 13 is the form of bankruptcy individual filers generally choose if they have not been able to pay their back taxes.

If Chapter 13 appears to be the right option for you, be prepared to square your bill with the IRS.

Holiday travel expenses may leave many in search of debt relief

The time is approaching when many individuals in Tennessee will get together with family and friends and celebrate the holiday season. For many, this also means creating a schedule and budget for holiday traveling. With recent reports indicating that many plan to use credit accounts to cover their expenses, holiday travel costs could leave some families searching through the available options for debt relief.

Recent studies indicate that just under half of all Americans surveyed said they plan to spend money on expenses such as hotel rooms and flights over the holiday season. These studies indicate that the average person could spend as much as $1,500 on travel-related expenses. With many individuals planning to use credit cards to cover their needs, a holiday trip could leave many facing significant financial concerns.

Knowing the options when dealing with high levels of medical debt

Visiting a medical facility for treatment can be an intimidating experience, and in some cases, it may also be unavoidable. Unfortunately, the high costs of care could place a person in Tennessee in a significant financial bind and leave him or her desperately searching for relief. While there might be options available for those facing overwhelming amounts of medical debt, some may be uncertain of how best to handle the situation.

Whether stemming from an unexpected trip to an emergency room or from a scheduled appointment, the financial ramifications of pursuing medical care can be substantial. While the initial fees can be staggering, in some cases, the amount a person owes could be negotiable. Those who struggle to get by due to the presence of medical bills could benefit from reaching out and attempting to negotiate a reduction in payments or set up a payment plan.

Debt relief: Even healthy financial choices involve certain risks

With the stigma associated with debt, many individuals in Tennessee may seek to avoid taking on certain financial responsibilities at all costs. However, experts suggest that there are certain scenarios in which taking on debt could be a healthy financial decision. Unfortunately, the consequences to falling behind on these obligations may still leave one desperately searching through the available options for debt relief.

While student loans are one of the most common forms of financial strain, experts indicate that the benefits of pursuing a higher education may outweigh the costs. A college education could increase one's opportunities at advancing his or her career exponentially. Another form of debt that many experts consider healthy pertains to home mortgages, especially if the value of a home has a record of seeing increase over time.

Debt relief: Assuming responsibility for a partner's debts

Dealing with high amounts of debt can be troublesome under any circumstance. There are a variety of scenarios that could lead a person in Tennessee into times of financial strain, such as a medical emergency or issues with credit card debt. However, recent studies indicate that there are many who have encountered a need to pursue debt relief due to the spending habits of a partner or spouse.

Dealing with one's own financial responsibilities can be stressful enough. However, recent studies suggest that more than 74 million consumers across the nation have experienced monetary concerns after taking on a partner's debts. These debts range anywhere from credit card and medical bills to student loans, and similar obligations can place a substantial financial weight on an individual.

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