Dealing with overwhelming debt is never easy, and many try to find solutions for their predicaments on their own that does not include bankruptcy. Instead, they seek other alternatives that they believe will be just as effective, such as debt consolidation. However, as one Tennessee woman recently found out, many companies exist that prey on unsuspecting consumers looking for debt relief.
The financial problems faced by some seniors living in Tennessee and other states can be overwhelming. A couple in their mid-eighties who have amassed $50,000 in credit card debt and another $50,000 in medical bills, and with a home that is mortgaged, may find that the most sensible and effective debt relief remedy is a Chapter 7 bankruptcy. Prior to making the decision, however, the couple will benefit by consulting with an experienced consumer bankruptcy attorney to determine if they are qualified to file and what will be the impact of the filing.
Recently released statistics suggests that first-time homeowners are defaulting on their mortgages for the third straight month in a row. After months of stability, it appears that consumers are beginning to encounter financial difficulty. That could leave more individuals and families in need of debt relief services, in Tennessee and elsewhere.
In recent years, there has been a significant trend toward living a minimalist lifestyle. The definition of "minimalist" is difficult to pin down, but the overall concept is to set aside material things and focus on only those possessions that serve a purpose or bring a true sense of joy. For those in Tennessee who are looking for debt relief options, the idea of a minimalist lifestyle can be very appealing.
Faced with losing their home, many Tennessee residents will go to great lengths to avoid that outcome. That includes working with their loan servicer to pursue available debt relief options. In many cases, those efforts are successful. At times, however, borrowers are subjected to questionable business practices. Protecting Americans from unlawful and unfair actions is the role of the Consumer Financial Protection Bureau (CFPB,) and that entity has recently announced more than $1 million in fines directed at Fay Servicing, a loan servicing company.
For some college graduates, the high cost of tuition and associated expenses will come as a shock once those student loan bills start to roll in. Faced with the need to cover living expenses while working at an entry-level position, many will turn to credit cards to cover costs. Before long, a serious debt situation can arise, and the need for debt relief can become acute. Unfortunately, there are numerous companies in Tennessee and elsewhere that exist to prey upon that need.
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.
Despite regulations established by the now former president, student loan debts continue to rule. Delinquencies remain a serious problem as most borrowers are behind on their payments. Since 2013, the average past due balance increased by 17 percent. Currently, 42.4 million people in the United States have student loan debts exceeding a combined $1 trillion.