For many Tennessee residents, financial strain has altered daily life. The stress and turmoil of being buried under a mountain of debt is hard to properly portray, but anyone who has lived this way knows exactly what it means to feel overwhelmed by debt. Chapter 7 bankruptcy offers a path out of debt and back toward financial stability, but there are a number of things that should be considered before taking that step.
Living in Knoxville means you are no stranger to hard work. There is nothing wrong with you wanting the finer things in life. But if you have racked up a ton of credit card debt to get those things, then you may be facing some gut-wrenching decisions to improve your financial situation. No matter what you decide, it is possible for you to overcome this ordeal.
When it comes to creating a stronger financial foundation after personal bankruptcy, it is often helpful to take a close look at the path, while also maintaining a forward-focused plan of action. That involves giving careful consideration to how one's debt troubles became so pronounced, and taking active steps toward choosing a different path in the years that follow a successful bankruptcy. As with so many issues, debt management is aided by having a solid understanding of how things went awry. Tennessee residents should take the time to examine their history as they craft their future.
For many Tennessee residents, going through a divorce can lead to serious financial problems. To begin, simply having to operate two households with the same income that previously covered one will put a squeeze on the finances of both parties. Then there is the matter of property division to consider. The division of marital wealth leaves both parties holding a portion of accumulated assets. Just as assets are divided, so is debt, leaving some newly divorced residents with high levels of credit card debt, and very little to show for it.
Economic turnarounds usually motivate American consumers to spend more. The end of the Great Recession of 2008 was no different from other recoveries. The good news is that buying habits are reverting to pre-recession levels. The more troubling news is that purchases are being put on plastic.
Many Tennessee residents have added a friend or loved one to one or more of their credit cards. Adding someone as an "authorized user" can help boost their credit score, and is a great tool for someone who is just starting to establish credit, or is recovering from a serious credit score setback. This act of kindness, however, can come back to bite the original borrower if the privilege is abused. Far too many people have seen their credit card debt rise based on the actions of an authorized user.
For many Tennessee residents, earning a college degree is an accomplishment that is tinged with a measure of anxiety. While statistics still show that people with a college education make more than those who choose a different path, there is also concern about a shifting job market and economic instability. Many students have to rely on student loans to pay for college, and repaying those loans can be a challenge as they search for gainful employment after graduation. For those who eventually default on their loans, wage garnishment is a real concern.
Everyone knows that living under a heavy burden of debt is stressful. However, there are certain aspects of high debt that are often overlooked. One of those involves the damage that can be done to relationships when one or both parties are swimming in a sea of debt. Debt management is one way to address the problem, and may even lead to a better relationship for some Tennessee couples.
Faced with a mountain of debt, many Tennessee residents will do virtually anything to regain financial stability. Unfortunately, that leaves some wide open to falling victim to a debt relief scam. Any time there is a situation where people are in dire need of assistance, there are literally hundreds of unscrupulous people who are all too eager to take advantage of that situation. It is important to be able to distinguish between legitimate debt relief programs and scams that will relieve consumers of nothing but their hard-earned money.
Debt collectors are the bane of consumers dealing with financial problems. Continuous phone calls, final notices, lawsuits and other threats become a plague. Representatives of collection agencies have little, if any sympathy for the people they target for what often amounts to harassment.