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Easy tips to get out of debt

A Northwestern Mutual survey of 2,700 people over the age of 18 revealed that about 75 percent of the respondents struggled with debt. Furthermore, 40 percent said that debt was a cause of stress. The average amount of debt that they carried was $37,000 not considering mortgages. About half carried at least $25,000 in debt. Despite that, many people still make nonessential purchases that may make it harder to pay down what they currently owe.

One of the best ways to start paying down an outstanding balance is to acknowledge it and not feel guilty about it. In some cases, simply talking about the problem may make it easier to deal with. However, before people can start paying down a debt, it is critical to know what kind of balances that they may have. Ideally, a debtor will know the balances, interest rate and repayment terms of each obligation.

From there, it is best to deal with balances that have highest interest rates like credit card debt. This is where having a budget can be helpful, and it may be a good idea to separate essential bills from those that may be discretionary in nature. From there, individuals may benefit from consolidating existing debts and by using cash instead of credit to make payments.

Filing for bankruptcy may make it possible to eliminate debt or restructure it. This may make it easier to either gain a fresh financial start or work toward getting out of debt in a reasonable amount of time. An attorney can explain the process and the eligibility requirements.

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The Huggins Law Firm, PA

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1812 Lincoln Street
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Columbia, SC 29201

Phone: 803-764-1558
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