Over the holiday season, one great desire many parents have is to make the holidays as merry and bright as possible for their kids. It is important for parents though to not let this desire lead to overspending.
Debt is one of the most crippling issues facing many American families today. Credit card debt is especially rampant, with consumer debt said to be in the billions of dollars per year. For this reason, many people both here in South Carolina and elsewhere in the nation turn to Chapter 7 bankruptcy to help them recover from insurmountable debt. However, it is important to understand the nature of bankruptcy before making such an important financial decision.
Personal finance advisors warn consumers that taking a loose approach to their money issues can lead to serious trouble. It may not seem like a big deal to be charged a late fee occasionally or to overdraw one's checking account, but these may point to signs of dangerous habits that have led many others down the road of overwhelming debt, harassment from creditors and fears of losing their homes. Whether a South Carolina consumer is trying to avoid a financial crisis or recover from one, the first step is to examine the way one handles money.
Recent studies suggest that American consumer debt has just passed a new milestone, totaling some $13.2 trillion for the 2018 fiscal year. This means that the average South Carolina resident carries debt of over $40,000, including credit card debt, student loans and other forms of debt. This may sound dire, but thankfully, many strategies exist to help those struggling with debt to free themselves from these financial problems.
Summer vacation, back-to-school shopping, Christmas -- it all adds up. When these events are considered along with the everyday expenses that the typical South Carolina family faces, it can be a struggle to keep ahead financially. Then, when there is an unexpected expense such as a large car repair bill or hospitalization, the family budget may simply not be able to absorb any more. This is where many families turn to credit card debt as a solution.
Keeping up with rising costs of living on what are often stagnant wages can be difficult during the best of times, but add debt into the mix and the few people may make it out on the other side. Many South Carolina debtors are now struggling with burgeoning household debts in recent years. As non-mortgage debt continues to climb, bankruptcy may be the most sensible option for consumers who are struggling to keep up.
According to the financial world, the American consumer is doing well. Unemployment is down, consumer spending is up and credit is readily available. While this may be good news to some South Carolina residents, it can also be a concern for others. Some residents are discovering that they are drowning in credit card debt and auto loans with no apparent way out.
Credit cards make it easy to acquire both wanted and needed items. While it may still be a few days until payday, the South Carolina resident can simply stop by the grocery store and stock up by charging items on the credit card. Additionally, rather than waiting until funds are available, one can go ahead and purchase a new outfit or other desired item. These may seem like small things, but over time, the South Carolina consumer can find him or herself with more debt than can easily be handled.
The country is experiencing decreases in unemployment and increases in household income, both positive signs for consumers in South Carolina and elsewhere. However, many families are still struggling financially, particularly when it comes to credit card debt. Consumers in the nation have over $900 billion in credit card balances, which roughly equates to $7,300 per household. While this amount is increasing, a growing of people have adequate savings to pay off their credit cards if necessary.
In South Carolina, when one files a personal bankruptcy, one of the benefits available is that a secured loan transaction can be erased simply by returning the collateral that stands as security for the loan. Thus, surrendering a car will put to rest the creditor's claims. There may be a deficiency amount that the creditor will claim, but in a Chapter 7 straight bankruptcy, the bankruptcy attorney will see to it that any deficiency will be discharged as an unsecured debt.