Many people in America struggle with debt; you're not alone in that respect. According to data from 2014, the average household has debts of over $15,000 just in credit card debt. On top of that, student loans and mortgage debts can average around $32,264 and $155,192.
With these debts, it can be hard to navigate a normal way of life. Yes, overspending can be a cause of debt problems, but it's more common for debt to come from uncontrollable conditions. For instance, a medical problem can, even with insurance, cost a person thousands out of pocket. Medical bills themselves are the top cause of personal bankruptcies.
While bankruptcies were dropping in 2014, the facts show that over a million people still filed within the United States. Bankruptcies can result in losing property, damage to your credit score and other lasting effects, so before you decide to file, consider all your options. First, slash any extra expenses for things you don't need. Cable television, eating out and other such things are unnecessary for most people and can result in you spending hundreds a month.
Call your creditors or have your attorney call them for you. You may be able to negotiate with them to get a lower interest rate or to have a reduction in fees that can lower your bill.
Remember to prioritize which debts are paid down first. After you pay for necessities, pay the debt with the highest interest rate; in the long run, it will save you more money that you can apply to debts that you normally pay a minimum amount for. If after that, you still think bankruptcy may be your best option, our website has more information about the steps to take to get started.