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.
Many South Carolina residents have debts, and some of them struggle to repay them. Debt consolidation may offer a way for people to repay their obligations at a lower interest rate, but it is not a good idea in certain cases.
Increasingly, in South Carolina and across the U.S., people who borrowed money to pay for school are struggling to pay it back. For individuals who relied on private loans, which are typically more expensive than other borrowing options, there may be ways to secure temporary or permanent relief. Contacting an attorney may be an important step toward reducing or eliminating debt payments.
South Carolina consumers who are considering bankruptcy might be concerned about how they will rebuild their credit. Depending on whether a person has filed for Chapter 13 or Chapter 7 bankruptcy, the bankruptcy will remain on credit reports for seven or 10 years, but this does not mean that their credit is ruined. There are several steps people can take to improve their credit.
South Carolina residents who have decided to file for bankruptcy must complete a means test. It consists of two parts that are used to determine whether debtors can file for Chapter 7 bankruptcy or if they are restricted to Chapter 13 bankruptcy. While Chapter 7 bankruptcy can provide debt forgiveness for people with little income, Chapter 13 bankruptcy requires people to use their disposable income to pay off at least part of their debt.
South Carolina residents who are planning to file for bankruptcy may wonder how purchasing a car could affect their petition. Though taking on new debt before a bankruptcy filing is usually not advisable, financing a car can actually benefit some situations. However, it is important to make sure that a car purchase is made 'in good faith" so that it does not send up any red flags.
South Carolina residents who are seeking relief from creditor collection efforts may wish to file for bankruptcy. When they do so, they are in general granted an automatic stay of any collections lawsuits by any creditor, government agency or other person or entity. It can also provide other benefits such as keeping the lights or heat on in a home if people are behind on utility payments.
Filing for bankruptcy is sometimes the best solution for a South Carolina resident who is experiencing a financial crisis. If a person loses their job and cannot keep up with their mortgage or car payments, filing for bankruptcy can protect vital assets from seizure by creditors. The downside of filing for bankruptcy is that it can have a negative impact on a person's credit score for several years.
A lot of South Carolina residents have overwhelming credit card debt. In an effort to pay their balances down, some people enroll in debt management plans offered by credit counselors. Such a plan can allow people to consolidate all of their debts into one monthly bill with a lower interest rate.
When South Carolina homeowners find themselves having financial problems, the possibility of foreclosure may become a significant concern. While some people are able to make their mortgage payments while trying to manage their debt, others cannot. This puts these consumers at risk of losing their home and having to find a new place to live.