Choosing between saving and spending

On Behalf of | May 2, 2016 | Bankruptcy |

According to a survey conducted in part by the National Foundation for Credit Counseling, people in Texas and around the country are trying to save more money but also have larger credit card balances. Of 1,600 people in that survey, 10 percent said that they carried more than $2,500 in credit card debt each month. Overall, consumer credit debt increased $3 billion in February following a sharp rise in the last quarter of 2015.

This is despite the fact that 26 percent of respondents said that they tried to save more. In addition, 69 percent of those polled said that they contributed to a non-retirement account. However, those who study the issue say that credit card debt can negate or at least erode the benefits achieved by saving. The problem generally gets worse for those who carry large credit card balances each month.

For those who are struggling with overwhelming financial obligations, there may be a few available forms of debt relief. In some cases, it could be possible to negotiate payment terms with a lender. Credit counseling agencies could sometimes be of assistance in this regard as well.

Another form of debt relief could be filing for bankruptcy. One short-term effect that this can have is that it can put at least a temporary halt to creditor harassment and collection activities. For those who have a regular source of income and who would like to keep them home from being lost in a foreclosure proceeding, Chapter 13 may be an answer. There are a variety of requirements for this form of personal bankruptcy that an attorney who has experience with these matters can outline.

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