When Escondido residents begin to realize that their financial situation is starting to become a major concern in their lives, most will attempt to find a solution to the problem. Financial difficulties can begin for a variety of different reasons, such as job loss, the sudden onset of a medical condition or the steady build-up of debt. In essence, financial challenges can occur suddenly, or they can build over time. When debt is the source of the problem, some Escondido residents will come down to two choices: debt consolidation versus bankruptcy.
Many Escondido residents may not know the difference between secured debt and unsecured debt. Secured debt is something like a car loan or a mortgage - the loan is tied to an item of physical property. Unsecured debt, on the other hand, is something like credit card debt. Why is this difference important? Well, mainly it's because unsecured debt is a prime candidate for discharged in a Chapter 7 bankruptcy filing.
For many of our Escondido readers who turn on the evening news, many will note that there are regular reports regarding the current health of the national economy. To hear the news reports tell it, the economy is as healthy as it ever was, with the stock market soaring and the job market continuing to recover. However, for many people there is one economic issue that they still see every time they open their mailboxes or answer their telephones: debt.
Many Escondido residents probably start to get a bit worried when they see that they are accumulating credit card debt at such a rate that they cannot pay off the balances in full each month. As many financial experts have noted, carrying over credit card debt on a month-to-month basis is essentially the most expensive way to borrow money. So, many people who find themselves in this position may be asking, what are some of the best steps to address credit card debt?
A recent post here described some of the credit card hurdles that recent college graduates may have to address as they head out into the world on their own for the first time. Some people may automatically assume that younger people, like recent college graduates, may be the most prone to running into significant credit card issues, such as credit card debt. But, are younger people really the age group that carries the highest amount of credit card debt?
Most people in America have at least one credit card. Many people have multiple credit cards. Credit cards can be a useful financial tool in some situations, such as covering emergency and unexpected expenses when short on cash. However, they can be a source of a significant problem that continues to build in this country in many forms: unpaid debt.
The CARD Act is a federal law that many of our readers may not be familiar with, although previous posts here have discussed some of the more important aspects of the law. However, even if Escondido residents have never heard of this law, they may have seen some of the changes that were implemented by this law when they open their credit card bills every month.
Facing financial challenges and coming to the determination that bankruptcy is an appropriate option is a big step for Escondido residents who find themselves facing seemingly insurmountable debt problems. But for many people, the most daunting part of filing for bankruptcy is the prospect of rebuilding credit after the filing is complete. An Escondido resident who is about to file for bankruptcy may already have poor credit, and it may seem like there will be no chance of building up their credit score after bankruptcy. But, in reality, there are incremental steps that can be taken very soon after a bankruptcy case is over that may help rebuild credit.
A recent post here covered the burgeoning reports of the increase in credit card debt in America. Seeing those reports can make a person wonder, just how high will credit card debt get in our country? But, for any Escondido resident who is already dealing with mounting credit card debt, the better question may be, what can I do about my own credit card debt issues? For some people, the choice may come down to filing for bankruptcy or attempting to consolidate their credit card debt.