Everyone has advice for dealing with life. An expectant mother may hear advice from total strangers, and someone heading off to college may feel crushed by the amount of advice offered. The same may be true for anyone struggling with debt. In many cases, those in Connecticut longing for debt relief may keep their problems secret to avoid the perceived judgment and well-meaning advice of others. For example, much financial advice centers around budgeting.
To control debt, advisors recommend controlling spending. Keeping a budget may help one manage how and where the money is going. This may allow the consumer to see the areas in which he or she is overspending and encourage more efficient and prudent use of money. A budget may also help someone reduce debt by shifting spending from unnecessary items to retiring the debt.
For those already struggling with debt, advisors may suggest transferring high interest credit card balances to cards with lower interest. Consolidating loans is another suggestion for making payments lower and more manageable. A person may also seek help at credit counseling agencies.
While it may be true that some people in Connecticut find themselves in debt because of uncontrolled spending, many others reach a crisis stage because of inadequate income, job loss, medical expenses or other financial emergency. For those people, budgeting or monitoring their unnecessary spending may be impossible. Transferring debt and consolidating loans may lead only to more trouble, that is, if their credit is good enough to even be considered for such a plan.
In these cases, the best alternative for debt relief may be elimination of debt and a fresh start. Both Chapter 7 and Chapter 13 bankruptcies for debt relief have their advantages, and discussing these options with an attorney may provide answers and guidance. While some may think consulting a bankruptcy attorney is a drastic step, to those who are burdened with debt, it may be the best option.
Source: onmogul.com, “Debt Relief: Finding the Right Option for your Situation“, Terry Godier, Accessed on July 22, 2017