No one wants to file for bankruptcy, yet it can actually be a positive, beneficial step for many individuals facing insurmountable debt. Bankruptcy is largely misunderstood, and there is a negative stigma associated with walking through this potentially necessary process. From the thought of losing your property to getting rid of debt, you may have many questions and concerns about how it works.
People in Nashville use credit cards for all types of reasons. For some, it is the only way they can afford big purchases such as new appliances, while for others with low incomes using credit can help them with their everyday expenses. Anytime a credit card balance is not paid off at the end of the month, the user ends up being charged interest on any remaining amounts.
People who are struggling financially in Nashville may find themselves behind on paying certain bills. Since credit cards are considered unsecured debt, meaning there is no collateral tied to it like there is for something such as a mortgage or car loan, they often become one of the first payments that people stop making. When a credit account goes unpaid for a certain period of time, the creditor may charge off the account, according to the Balance.
Consumers in Nashville may use credit cards for many different reasons. With the number of card offers out there these days, there is certainly no shortage of types of cards to choose from. The average amount of household credit card debt is on the rise, according to CNBC, and has now reached over $1 trillion. Some are now asking whether efforts by credit lenders to lure consumers in with attractive rewards programs are contributing to this increase.
Personal debt can come in many forms, each of which can be challenging to overcome. When considering debt, your first thought might lean toward overspending or mismanagement of finances. However, there are numerous factors that can contribute to financial struggles, some of which could be unavoidable.
For many people who struggle with debt in Tennessee, filing for bankruptcy ends up being their best option. Bankruptcy can be an opportunity to wipe one’s financial slate clean and start over again without past debts hanging overhead. While the reasons may vary from person to person, a common cause that leads people to incur large bills that they cannot afford is medical expenses. In fact, according to USA Today, medical debt is the number one reason that people file for bankruptcy.