Holiday Debt Hangover Cures
Now that the holiday season comes to an end many of us will be receiving a much dreaded credit card bill in the mail. It was reported that consumers spent 30 percent more this year on holiday gifts than in the past five years. To make matters worse, the majority of us purchased these gifts using our credit cards.
Credit card spending has become an epidemic in America over the last few years. As a result, personal debt burdens continue to rise and many people have been forced into bankruptcy over economic pressures and poor spending habits. While the holiday season has passed, too many of us will be paying for these purchases for the next year in high interest fees.
Is There Anything We Can Do?
Luckily, the answer is “yes”. It is never too late to take a look at your debts and begin a plan of action to resolve them before the need for bankruptcy strikes. The best place to start is by examining your budget. How much income are you making in relation to your expense load? In other words, do you have any expendable income after all of your monthly expenses are paid each month? It is important to know how much flexibility you have in your budget if you are going to develop a plan to pay off debts as quickly as possible.
Identify one debt account that you can realistically pay off by the end of the year. This may be a debt with the lowest balance or one with the lowest interest rate. Either way, channel as much of your expendable income towards paying this debt in each monthly payment. Try to pay more than the minimum payment whenever possible, always being cautious not to overspend or overextend yourself for essential expenses.
Trouble Managing Your Current Debt Load?
Think negotiations. That’s right, you can negotiate your debts with creditors. Many people never think to contact their creditor to request a lower interest rate, reduced minimum payment or extension in payments. Missing a payment is the worst thing you can do, so always contact your creditor to ask for a temporary extension before you miss the payment.
Although it may seem odd that a creditor would be willing to negotiate, consider this. Creditors stand to lose much more of their money if you attempt to settle your debts or file for bankruptcy. Your creditor is far more willing to negotiate than they initially lead on. All it takes is persistence and planning. It is important that you know how much you can realistically afford to pay and make your creditor an offer. Even after high spending seasons, such as the holidays, creditors are open to negotiations. All you have to do is ask.
The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their Dallas bankruptcy attorneys specialize in all aspects of Chapter 7 and Chapter 13 Bankruptcy. As bankruptcy lawyers in Dallas, the Lee Law Firm attorneys understand the pressures their clients face as the battle a financial hardship.
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