Over the last 30 years, American citizens became hooked on credit. Being able to buy something now and pay for it later has become the new normal. Back in our parent's days, people used to save for that special vacation or a present. There were even layaway programs at all of the massive shops that were very talked-about coming up to birthdays and Christmas. The thing was, you did not get the item till it was paid totally.
Now, you can purchase that large screen TV that you can't afford and have it in time for the Super Bowl. By the point the bill comes in the post, most US people have just moved on hunting for that next best item to buy. This has turned into a illness in American culture and I don't accept that folks remember what it is like to live out of bondage and be debt-free. The average US citizen in 2011 ended the year with close to $16,000 in bank card debt. The funny thing is,currently, the earnings is only $35,000 a year. Take out for taxes and living costs it does not look like this debt has any hope of ever being paid off.
As the average debt level of Americans carries on rising a little bit each year, the only thing that may stop the debtors from continuing to charge is when the creditors cut them off. In reality this is probably the nicest thing that would possibly happen to these people although they don't think so. At that point, they would probably have no other option but to seek the guidance of an insolvency lawyer and file for bankruptcy.
For individuals that are weighed down with big amounts of unsecured debt, filing Chapter 7 bankruptcy may become a real life fantasy for these individuals. Initially look, the great majority of people don't want to become bankrupt because they do not want to give up their ability to have mastercards. What they don't understand is certainly after filing bankruptcy, opportunity seizing creditors will see these debt-free debtors as easy pickings to get them back in debt. Often it takes something extreme to make a person wake-up and see how nice it is to exist without credit while being debt-free. This kind of carefree life puts things back into some kind of perspective for these individuals post insolvency filing.
It isn't obligatory to delay until creditors cut you off before filing Chapter 7 bankruptcy. Often it's good to read the writing on the wall and see the inescapable coming. Making lowest payments to keep these credit card accounts open is no way to live. The only one that's benefiting from that account is the creditor. If the creditor will grant the balance to be raised continuously it becomes very obvious this is a debt that is going to go south. Why take good hard-earned money to pay interest to creditors on a debt that may never be able to be paid off is dumb. When the light clicks on, many of us filing Chapter 7 insolvency will see all the money they threw away paying out interest only just to keep the Visa card going. Dependent on the situation, the swiftest and easiest way to become virtually debt-free or close to it is to file Chapter 7 insolvency. The debt-free part, depends heavily on if the debtor has any secured obligations that they would like to keep. If all the individual's debt is unsecured, like credit cards, medical bills and business loan after they get their bankruptcy discharge there is a good chance they may be debt-free.
Now, you can purchase that large screen TV that you can't afford and have it in time for the Super Bowl. By the point the bill comes in the post, most US people have just moved on hunting for that next best item to buy. This has turned into a illness in American culture and I don't accept that folks remember what it is like to live out of bondage and be debt-free. The average US citizen in 2011 ended the year with close to $16,000 in bank card debt. The funny thing is,currently, the earnings is only $35,000 a year. Take out for taxes and living costs it does not look like this debt has any hope of ever being paid off.
As the average debt level of Americans carries on rising a little bit each year, the only thing that may stop the debtors from continuing to charge is when the creditors cut them off. In reality this is probably the nicest thing that would possibly happen to these people although they don't think so. At that point, they would probably have no other option but to seek the guidance of an insolvency lawyer and file for bankruptcy.
For individuals that are weighed down with big amounts of unsecured debt, filing Chapter 7 bankruptcy may become a real life fantasy for these individuals. Initially look, the great majority of people don't want to become bankrupt because they do not want to give up their ability to have mastercards. What they don't understand is certainly after filing bankruptcy, opportunity seizing creditors will see these debt-free debtors as easy pickings to get them back in debt. Often it takes something extreme to make a person wake-up and see how nice it is to exist without credit while being debt-free. This kind of carefree life puts things back into some kind of perspective for these individuals post insolvency filing.
It isn't obligatory to delay until creditors cut you off before filing Chapter 7 bankruptcy. Often it's good to read the writing on the wall and see the inescapable coming. Making lowest payments to keep these credit card accounts open is no way to live. The only one that's benefiting from that account is the creditor. If the creditor will grant the balance to be raised continuously it becomes very obvious this is a debt that is going to go south. Why take good hard-earned money to pay interest to creditors on a debt that may never be able to be paid off is dumb. When the light clicks on, many of us filing Chapter 7 insolvency will see all the money they threw away paying out interest only just to keep the Visa card going. Dependent on the situation, the swiftest and easiest way to become virtually debt-free or close to it is to file Chapter 7 insolvency. The debt-free part, depends heavily on if the debtor has any secured obligations that they would like to keep. If all the individual's debt is unsecured, like credit cards, medical bills and business loan after they get their bankruptcy discharge there is a good chance they may be debt-free.
About the Author:
Peter Taylor is a senior money analyst for company loan and minimum charges personal loans in singapore. Recently he has taken up to provide independent finance guidance through local licensed money lenders
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