Photo by Karolina Grabowska
For anyone looking for bankruptcy debt relief in San Diego, it’s time to have a long and honest conversation about having personal consumer debt and what that means.
If we are to look at things from a very reductive point of view, society can safely be divided into two groups: “those who sell” and “those who buy.” Of course, there’s considerable overlap between the two groups, and one individual can bounce back from one label to another–this isn’t supposed to be a hardline distinction, is what I’m saying.
Now, most of us can reliably fall under the umbrella of “those who buy.” What does this mean for you? This means that you have, at some point in your life, been burdened with debt. Not only you, of course, but everyone that can be in the “those who buy” box has some level of personal consumer debt.
This debt can either be from a mortgage, a student loan, a credit card, a car loan, and many more. There are many types of consumer debt.
Debt is a surprisingly common aspect of living, especially in this modern world where the accrual of money is extremely important to maintaining a functioning life.
Yet, while debt is a normal part of being an adult who pays taxes and such, taking in too much debt without proper regulation can quickly become destructive.
What is Personal Consumer Debt?
Personal consumer debt is any kind of debt that an individual acquires because of personal, family, or domestic purposes–whether it is purchasing goods or services. As has been said above, it can either be because of credit cards, interpersonal loans, or mortgages. While personal consumer debt is a significant issue everywhere, it is especially so in the United States when you learn that the average American has over $90,000 in debt. A majority of these people are commonly in debt because of credit card loans.
Typically when you are in debt, you owe money—money that slowly grows over time because of interest—to creditors, which are usually companies, banks, and other financial institutions.
If left to its own devices, personal consumer debt can quickly become a thorn in your credit score and a glaring liability for your finances. So, if you believe you are biting off more than you can chew, immediately seek help and ask for expert opinions, especially if you’re in need of bankruptcy debt relief in San Diego and neighboring areas. Having debt in California can be concerning, guys!
Why Debt Can Damage You
A debilitating outcome of consumer debt is that most of them have extremely high-interest rates. Credit cards, for example, have insidiously high rates that go over 20%–and if you’re one who’s clumsy with their purchases, they can quickly add up, and you’ll be hard-pressed to pay off the balance. The higher the balance, the slower it seems that progress can even be made! This is why if you’ve got debt, you have to try and find ways to pay more than what’s the minimum monthly payment so as to avoid increased costs due to the high-interest rates.
Maintaining a good credit score can also be an issue when you have debt. For those of you who don’t know or aren’t aware enough, your credit score is the level by which you are judged for your reliability in paying credit.
Basically, the higher the score, the more likely it is you’ll be trusted to get a loan, but the lower it goes, the less likely you’ll be approved for one. Credit scores only ever improve when you are able to pay your debts on time and you never default on loans. Bear in mind that not getting loans will not net you a better credit score.
This is because part of having a good credit score is showing that you have what it takes to be responsible with the loans you get and pay them off on time.
Learning to Manage Debt
So, how are you going to manage your debt? The most consistently reliable way, of course, is to establish a budget plan. This means planning out how to spend your income each month, including how to pay your loans. Budget plans are great because it helps you identify which areas you can maybe put a damper on and which you can prioritize. This helps you look at things from a wider point of view and manage your debts much more easily.
And if you find that things are getting a bit overwhelming, perhaps you would want to consider filing for bankruptcy.
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