If you find yourself asking, “Do I have too much debt?” chances are that the answer is yes. Even though the majority of Americans are carrying too much debt, it doesn’t make the situation any rosier. It can still cause you tremendous stress - and debt can easily become a self-perpetuating cycle. You miss payments, which raises interest rates, so you have to get another credit card to pay for expenses, which increases your monthly payments, so you have to choose which bills to pay… and on and on. What are the signs that you have too much debt - and what can you do about it?
What is bankruptcy? For many of us, it is a frightening word, full of meaning, full of anxiety, full of stress. Understanding what the process is - and what it means for you - can help alleviate the fear and uncertainty. Bankruptcy is a federal process that helps individuals, spouses, or businesses, in essence, press “restart” on their finances. It helps them find relief for some or all of their debts - though it is not without consequences.
Last year, over 750,000 individuals in the United States filed for bankruptcy. While circumstances are as diverse as the people filing, many view bankruptcy as a last resort. They have struggled with debt, and it has grown beyond their ability to repay it. It can feel as if your life - not just your finances - is spiraling out of control. Know that you are not alone; hundreds of thousands of people are facing this battle. If you can no longer keep up with payments, putting bankruptcy on the table for consideration is important.