For some debtors in New Hampshire who are considering bankruptcy as a possible solution to overcoming unmanageable debt, Chapter 13 debt reorganization may be a viable option. In Chapter 13 bankruptcy, the debtor enters a repayment plan lasting between three and five years, during which time he or she will be required to make all scheduled payments to the estate. At the estate's close, the remaining unsecured debts will then be discharged.
New Hampshire debtors searching for a debt relief plan might want to consider bankruptcy. But before one goes down that route, there are other alternatives to consider. Each choice has pros and cons that should be weighed, and some options are better suited to different situations.
Many New Hampshire residents struggle to cope financially with a household income that barely covers their monthly expenses. An unexpected illness, injury or layoff may quickly lead to bills becoming unmanageable, and many families facing these challenges resort to using their credit cards to make ends meet. If you are in a situation like this, you likely know how difficult it can be to escape a cycle of debt. You may also be familiar with the relentless nature of debt collection agencies.
When people receive bills in the mail, most people automatically pay them. Unfortunately, not everyone in Rockingham County can always afford their bills, yet they can't just not pay them. So, many people in New Hampshire turn to short-term lenders who can provide easy access to money. Although a car title loan may seem like a good idea when a bill needs to be paid, it can actually cause more debt than it helps to erase.
Many consumers struggle to pay their credit card bills every month. The weakened economy and housing market caused many families, including several in New Hampshire, to rely heavily on their credit cards to make day-to-day purchases. When coupled with rising interest rates and decreased income, the balances on many consumers' credit cards may have become higher than they can afford to pay back. Financial challenges like this can be difficult to bounce back from, but a recent article offered several suggestions on what consumers can do to take control.
No one with heavy student loan debt should feel alone in their struggle. Currently, federal student loan debt in the U.S. totals at about $1 trillion, and many people who are having difficulty paying back those loans also have other debts, such as medical and credit card bills.
While the holiday season has certainly become a season of giving, at what point should people opt for saving money instead of buying gifts? That is a question that only each individual can answer for him- or herself. It is worth noting, however, that a poll of parents found that more than half of them were planning on going into debt just to buy presents for their children. It is highly likely that there are parents in Salem who are waking up to substantial credit card debt now that Christmas is over.
With more and more adults going back to school in light of the recent recession, federal and private student loans are on the increase. This is a trend that doesn't appear to be ending anytime in the foreseeable future.