People struggling with debt may turn to avenues such as taking on a second job or bringing in a renter to help with the bills. Sometimes, these approaches pay off. Other times, though, they can be risky or unnecessary. For example, an improperly vetted renter could cause significant property damage.
Think twice before dipping into your 401(k) to pay debt
Efforts to raise debt limits have support
If one judge had his way, Michigan residents and others would not face debt limits when filing for Chapter 13 bankruptcy. He and others shared this sentiment at an October meeting of the American Bankruptcy Institute Commission on Consumer Bankruptcy. This may help those who don't qualify for Chapter 13 bankruptcy but don't find Chapter 11 to be a realistic alternative.
The possible benefits of debt consolidation
Michigan residents who are looking for ways to better handle their high-interest debts may want to look into debt consolidation. This may allow them and others to make one payment each month at a lower interest rate than what is currently being paid. Debt consolidation may be best for those who have total debts that are less than 50 percent of their income.
Pitfalls to avoid when trying to escape credit card debt
Consumers in Michigan and around the country often turn to credit cards following an unexpected financial setback such as a layoff or illness. Paying revolving debt off can be difficult for people who are struggling to make ends meet because minimum monthly payments are made up almost entirely of interest, and other options to pay down debt, such as selling assets or borrowing at more attractive rates, are often not available to those with unmanageable financial situations.
When your adult child causes you unsurmountable debt
Although each bankruptcy case is unique, there are many common financial issues. A job loss, divorce or injury can put you in enough distress to declare bankruptcy. However, another common reason for financial turmoil is providing financial assistance to a child.
Americans may carry credit card debt for years
Roughly half of Americans in Michigan and elsewhere who hold credit card debt carry a balance for at least two years. Of those who admitted to carrying a balance for at least two years, half said that they have had it for five years. This was according to a study of 2,000 adults conducted by Creditcards.com. Baby boomers and those in the Silent Generation were the most likely to carry such debt.
3 Halloween co-parenting tips
October is here, which means it is almost time for Halloween. If you recently divorced and have a parenting plan, you might be wondering how to handle this holiday. Holidays come with unique challenges for divorced parents. Who will take the kids trick or treating?
