Now that 2020 is underway, you might be one of many Tennessee residents who wish to carefully review your finances before filing your 2019 tax forms. It’s definitely a good idea. You might also be one of many people who were hit hard this past year with increased debt. Numerous issues can spark a financial crisis, but you’ll be glad to know that most financial problems are temporary.
A thorough review of your past year’s spending and expenses can help you determine what exactly threw your financial train off track. As for overcoming the crisis and moving toward restored financial stability, you’ll want to learn as much as you can about the debt relief options that might be available in your specific circumstances.
Medical bills often disrupt finances
If you or someone in your household has been dealing with an adverse health condition, chances are high that there is a mounting pile of medical bills in your midst. Whether it’s a chronic ailment or a car accident injury, you might have been unprepared to meet the expenses associated with the condition. In fact, medical expenses are one of the most common causes of debt in this state and across the country.
Are you the parent of a college student?
Like all good parents, you want what is best for your kids. While you might be happy and willing to help finance your child’s college education, it doesn’t make it any easier to keep up with payments. Going to college costs a lot of money, and tuition payments often lead to increased household debt.
Getting laid off or losing a job
Perhaps, you can relate to others in Tennessee who were doing well and making ends meet but then suffered from layoffs or termination at work. Sudden and unexpected loss of income is a common cause of serious financial debt.
It can be difficult to find a new job, and in the meantime, your family still needs to eat, pay utility bills, pay the mortgage and handle other expenses. This type of situation often leads people to start using their credit cards to pay bills, which leads to serious debt if they are unable to pay off the balance every month.
Weigh your options
Especially if you are currently facing a serious financial crisis, it’s wise to review your finances to determine what you can do to get things back on track. You might have a way to create more cash flow or to cut back on spending. Then again, you might feel a need to explore additional options for immediate debt relief such as bankruptcy.
In fact, bankruptcy often provides people a means to satisfy debt and lay the groundwork for a stronger financial future. Both Chapter 7 and Chapter 13 programs have eligibility requirements, which is why it’s best to consult with someone who is well-versed in such issues before pursuing a definite course of action.