Overcoming Post-Holiday Debt in Arizona
Post-holiday debt is a real and serious thing that a significant portion of the American population has to deal with.
According to statistics for 2017, the average post-holiday debt per household was 1,054 dollars. It was accumulated primarily in the form of credit card debt. The figure is five percent higher than the 2016 holiday debt and for most people, months will be required to deal with the sum.
If you’re struggling with post-holiday debt and financial issues, you may want to consider a few of the following approaches aimed at helping you get your money problems resolved.
Deal with High Interest Debt First
Those who are attempting to address multiple types of debt will need to prioritize.
Strive to cover at least minimum payment on all of your debts but if you can’t and you’re dealing with several credits, you should prioritize.
Focus first on the high interest debts. Draft a list with the debts listed from highest to lowest priority. The high priority debt should be your absolute focus, especially if you’ve found yourself in a situation that prevents you from making all of the necessary payments.
Debt consolidation is a good choice for those who are suffocating under the weight of multiple different credits.
Through debt consolidation, you will be getting refinancing for all of the individual loans and credits. You are taking out one loan to pay off all the others and you’re left with that one loan. As a result, there’s a single payment you’ll have to make every month. Debt consolidation options will often come with more favorable conditions and interest rates than some of the individual loans you’re dealing with.
There are many consolidation options out there. It’s best to get several quotes before choosing one or the other. When you have more information, you will find it much easier to determine which single loan is going to be the most cost-efficient option.
Cut Back on Credit Card Use
Or stop it altogether. Accumulating new debt while you’re trying to deal with your holiday credit will result in a vicious cycle you’ll find it quite difficult to get out of.
Credit cards create a false sense of financial security. You see something that you like, you pay for it with the credit card and you deal with the repercussions later on.
Get in the habit of spending solely money you have. You don’t have to deny yourself everything you want. Financial responsibility is simply a matter of being organized and knowing what you can afford at the particular moment.
Holiday Debt Settlement
Sometimes, being disciplined isn’t going to cut it. You’ll have to take much more serious measures in order to address the situation.
Debt settlement is an option to consider in such instances.
In Arizona, debt settlement is defined as negotiating with creditors for the purpose of reducing the amount of debt or coming up with a more lenient repayment plan.
Occasionally, it may be possible to negotiate a lower lump sum payment that will get you out of debt altogether. To get such an outcome, however, it’s crucial to choose an experienced professional representative who will communicate with creditors on your behalf.
Bankruptcy after the Holidays: Is That a Good Idea?
The period after the holidays is a massive struggle for many people. Some of these individuals had already been dealing with unmanageable credit before the beginning of the holiday season.
If you’re one of these individuals, you may want to approach an Arizona bankruptcy attorney and explore that option.
Depending on your income, you could either opt for liquidation bankruptcy (Chapter 7) or debt reorganization bankruptcy (Chapter 13). Once the conditions of the bankruptcy are fulfilled, any remaining debt will be discharged and you’ll get your clean slate.
Many people think that bankruptcy is a last resort option but it doesn’t have to be. If you don’t know what bankruptcy entails, talk to an Arizona lawyer. Chances are that it will help you get back on your feet and reclaim your financial stability.
Click here for information on what is Chapter 11 bankruptcy in Arizona?