According to Ramsey Solutions, just over 55 million households are carrying a balance on their credit cards. Luckily for you, you are not alone. Unfortunately, society has placed this idea that things are more important than financial freedom. It certainly is okay to spend money as long as your finances are not burying you further and further into debt.
Here is just how much you are not alone when dealing with debt. According to CNBC, this is the average amount of debt the world is struggling with according to your age.
Gen Z (18- 23): $9,500
Millennials ( 24-39): $78,000
Gen X (40-55) $136,000
Baby boomers (56-74) $97,000
Silent generation (75+) $41,000
So, it’s okay if you fall into these categories, but it’s time to make a change in your life- right now. How? There are constant myths regarding bankruptcy, but nearly all of them are inaccurate or only partially the truth. Whether you file for Chapter 7, Chapter 11, or Chapter 13, we have debunked the common bankruptcy myths out there. Know that bankruptcy is not your only option but it may be your best.
Understand Your Financial Options
While debt can be overwhelming, here are a few actionable tips to help deal with your debt, today.
1. Understand Your Debt and then create a budget.
This means stop ignoring the collectors calling and understand the charges incurred. Then, get it in writing so you can create a financial plan.
2. Contact your debt collectors
After you have the documentation in writing, create a budget to pay the debt off. If you can’t, contact the collector(s) and negotiate based on your new budget. There is an art to negotiating. Remember to stay calm and start low.
3. File for personal bankruptcy
Gain a fresh start by filing for bankruptcy. There are pros and cons to filing for bankruptcy but depending on your situation one may outweigh the other.
Debt relief is available and you should understand ALL of your options! While some cases may be similar, each situation is unique in of itself. Dethlef Pykosh and Murphy are experienced bankruptcy attorneys in Camp Hill, PA who can guide you through a free bankruptcy consultation.