Holiday spending can lead to regret: managing post holiday debt.
Holiday debt can add up to stress after the season has passed. The following tips can help every consumer get a fresh financial start in the spring.
January 22, 2014 /24-7PressRelease/ -- Holiday spending can lead to regret: managing post holiday debt.
Article provided by Michael A. Fakhoury, Esq., P.C.
Visit us at http://www.fakhourylaw.com
Many financial expert project more people than ever paid for holiday gifts with credit cards this season. The increase is connected largely to the jump in online shopping. Regardless of the cause, it is not uncommon to find yourself managing debt after the season has passed. If it is not addressed, the debt can accumulate and even lead to creditor harassment.
Accumulation of unmanageable debt and harassment may be avoided by promptly dealing with the debt, if possible. The following tips can help you manage debt more effectively:
-List. It may seem basic, but making a list can help to address debt issues more effectively. Actually writing out the debts that need to be paid along with the interest rate tied to that debt can help in developing a plan that brings down the overall cost. This is done by helping ensure the debt with a higher interest rate is paid off first before it accumulates into an unmanageable amount.
-Budget. Once the list is made, set out a budget to help determine how these debts will be paid. Make a list of income and expenditures. This will help provide a view of how the payments will fit into a current spending pattern and provide a glimpse into any other adjustments that could be made.
-Adapt. It may make sense to change spending habits to help pay off this debt. For example, it may be possible that cutting out one night out every month provides enough extra income to make a payment towards holiday debt. Actually writing out the budget will provide an opportunity to take a logical look at where money is going and whether an adjustment can be made to cover these costs.
Unfortunately, even when these steps are taken some forms of debt may seem insurmountable. In these instances, a borrower may consider bankruptcy relief.
Bankruptcy and debt
Bankruptcy is a constitutionally protected right that allows a person struggling with debt an opportunity for a fresh financial start. There are a variety of forms of bankruptcy available that can help provide a consumer with a fresh start. Individual bankruptcy petitions generally involve use of either a Chapter 7 or Chapter 13 petition. Essentially, a Chapter 7 petition allows a borrower to discharge certain debts while a Chapter 13 petition is intended to lead towards a restructured, more manageable, court supervised repayment plan.
If you are considering filing for relief through bankruptcy, contact an experienced bankruptcy attorney to discuss your options.
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