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Signs that you have too much credit-card debt

There may come a point when you look at your credit-card debt and realize that you are in trouble. You hope you can dig your way out, but have questions about whether it's feasible to do so in a timely manner.

There are many signs that you have too much credit-card debt, including the following:

  • You can only afford to make the minimum payment every month
  • Your credit cards are maxed out, meaning you can't make any additional purchases even if you want to
  • Your debt-to-income ratio is too high
  • There are months when you're unable to make your payment on time, thus leading to a late fee
  • You're putting all your money toward your credit-card debt, making it impossible to save for anything else

Facing foreclosure? Maximize the chance of working it out

If your mortgage is in default and you've received a notice of foreclosure, there's no time like the present to take action. There are many things you can do, with none more important than contacting your lender to discuss any workout options that are available.

A workout is nothing more than a compromise between you and the lender, all with the idea of modifying the terms of the loan to help you stay in your home.

Mistakes to avoid when preparing for bankruptcy

Louisiana residents who face increasing debt and financial pressure may turn to bankruptcy for relief. Whether a Chapter 7 or a Chapter 13 filing will suit your situation best, there are some common errors to watch out for as you prepare.

The following mistakes can cause a variety of problems, from prolonging the process to accusations of fraudulent conduct. If you have specific questions or concerns, addressing them with a legal professional can clarify matters for you. Starting the process properly can help you navigate it smoothly and obtain the fresh start you need.

Tips to avoid credit-card debt this holiday season

As the holiday season closes in, it won't be long before you're making a list of the many expenses that you're sure to face in the months to come. Organization is a good start to staying within your budget, but there's no guarantee you won't overspend.

With access to a credit card, it's easy to go overboard during the holidays. From gifts to hosting a party, you know there are quite a few ways to spend.

Unexpected life changes can lead you to file bankruptcy

When some Americans hear that another person has filed for bankruptcy, they initially think that it has to do with that individual's inability to manage their finances. While this may be the reason that some individuals ultimately have to file, unexpected life changes most often result in bankruptcy filings.

Job loss

These tips can save you from too much credit-card debt

It's easy for credit-card debt to spiral out of control, especially since you're only required to make a minimum payment every month. If this happens, you'll soon find yourself searching for answers.

Here are several tips that can save you from too much credit-card debt:

  • Pay your balance in full every month: This is the best advice you can follow, as paying your balance in full means you're never dealing with credit-card debt. To do this, you must know how much you can comfortably afford to pay every month.
  • Don't skip payments: There is never a good time to skip a credit card payment, as doing so will result in a late fee as well as a red mark on your credit report.
  • Avoid maxing out your credit card: Just because you have a $10,000 credit limit doesn't mean you have to spend $10,000. As a general rule of thumb, keep your balance at 30 percent or less of your total credit limit.
  • Get something in return: If you qualify for a rewards credit card, you should take advantage. This allows you to earn points or cash back for every dollar you spend. It doesn't necessarily save you from debt, but it does give you something to counteract your spending.

How does bankruptcy affect student loans?

Having a higher education typically is the foundation for securing good employment and financial stability. However, it takes money to get an education. The price of schooling has gone up over the years, making it mandatory to rely on scholarships, grants and loans to earn a college degree.

If you have had a bankruptcy in years past, you may wonder how it will affect your ability to get a loan. On the other hand, if your economic state has crumbled and you are now considering filing for bankruptcy, you probably want to know what will happen to the debt. Here are the answers:

Important foreclosure questions to address

If you receive a foreclosure notice, it's hard to devise a plan in a timely manner. With so much going through your mind, including the possibility of losing your home, it's not out of the question that you'll make a decision that puts you in a worse position.

Before you do anything, here are some of the most important foreclosure questions to address:

  • What is the reason for the foreclosure notice? Obviously, it's because you have fallen behind on your mortgage payments. You want to dig around to find out why this happened. For example, you may realize that you have too much credit-card debt to comfortably make your mortgage payment as well.
  • Will your bank help you prevent foreclosure? Don't assume that your lender wants to repossess your home. They'd rather work something out with you, so don't hesitate to ask. A mortgage modification may be within reach.
  • Is it possible to sell your home? If you can no longer afford your mortgage payment, you may want to sell your home to escape trouble. This works if your home is worth more than you owe. If it's not, you'll need to consider a short sale.

5 ways to stop using your credit cards

Even if you have the best intentions, you may find it difficult to stop using your credit cards. For one reason or another, you continually pull out a card and overspend.

If this is a problem for you, don't expect to get away with it forever. At some point, your credit-card spending will catch up with you. When that happens, you'll be in a bad financial spot that requires immediate attention.

What happens after a bankruptcy?

You are in the process of filing for your personal bankruptcy, and you worry about what happens after. Whether you are due to receive a Chapter 7 discharge of your debts or a debt restructuring through Chapter 13, you are bound to have some questions. Like many other Louisiana residents, the thought of bankruptcy might have filled you with misgivings.

This could be due in large part to the stigmas that still surround bankruptcy, despite it being more common today than in past decades. Most people believe bankruptcy should be a last-resort option, and that it destroys your credit for life. Some might even tell you that you are being irresponsible by filing for bankruptcy instead of repaying your debts.

McBride Law Firm

McBride Law Firm
301 Jackson Street Suite 101
Alexandria, LA 71301

Phone: 318-625-0471
Fax: 318-445-8066
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