Thousands of Tennessee residents struggle to varying degrees with debt, and you may find yourself in that position: Worried about paying your bills, juggling payments from month to month, struggling to make ends meet and resorting to more credit to stay above water.
If you’re tired of battling with debt, there are ways to work your way out from under it. Not all are easy, and most take some time and effort, perhaps a bit of sacrifice. They can range from self-implemented debt-reduction strategies up to Chapter 7 bankruptcy.
Strategies for working down debt
Sometimes, the problem leading to spiraling debt is a lack of financial organization. You may be able to create a budget or debt reduction plan that cuts down on excess or undisciplined spending. This alone may be enough for you to turn the corner on debt.
You may need to resort to debt-reduction measures re-financing loans or consolidating multiple loans into a single one. These types of strategies can take an out-of-control debt or a multitude of overwhelming debts and make them more manageable.
Options for bankruptcy
While the previous strategies might be enough, in other cases, the debt is simply too steep to overcome. In this situation, personal bankruptcy might be your most effective way out of debt.
There are two types of personal bankruptcy:
- Chapter 13 bankruptcy, often called “wager-earners bankruptcy.” In a Chapter 13 bankruptcy, the court approves a three or five year repayment plan. You must have a steady source of income and debts below a certain limit.
- Chapter 7 bankruptcy, a more severe form of bankruptcy. Chapter 7 can erase your debts, but you’ll be forced to relinquish most significant assets and will likely be sold to pay whatever of your debts they cover.
If you’re struggling with debt, there are options to get out from under that burden. They range from debt mitigation strategies to personal bankruptcy, depending on the seriousness of your debt issues.