Recent data suggests that the average American carries over $90,000 in personal debt. Whether you have a mortgage, credit cards or student loans, chances are that you are dealing with some form of annoying debt. While carrying debt is not uncommon, finding ways to cope with it eludes a large number of Americans. What you may not know is that there are ways to relieve that burden and obtain a fresh financial start. Here’s more on coping with debt and the things that you can do to break free of the chains that carrying debt can place on your financial freedom.

Coping With Debt By Organizing, Consolidating Debt

Many people whose finances are in disarray lack organizational structure concerning their finances and obligations. Managing debt can further complicate your financial picture if your credit cards and other debt obligations all have different interest rates or your payments are due at different times. This problem can be alleviated through debt consolidation – where your debts are grouped together under one lender and you only have one regular payment to keep track of. Consolidation may help you save thousands of dollars because you can lock in all of your debt obligations at one low interest rate.

Coping With Debt By Creating A Budget

Your monthly income can very easily become evaporated if you are not keeping a close watch over your spending habits. Creating a budget and keeping track of your monthly expenses not only helps you eliminate debt, but also potentially prevents you from acquiring more of it. Taking a closer look at your financial picture may also allow you to find expenses that are unnecessary. Eliminating those superfluous expenses may free up your income to be used to pay off your existing debt faster.

Coping With Debt By Filing For Bankruptcy

While many people are able to manage their debt or otherwise settle with their creditors for a lesser overall payment, others have reached the breaking point and need a way out. Filing for bankruptcy may provide you relief if you have become overwhelmed by debt and think that you might never be able to pay it off. Both Chapter 7 and Chapter 13 bankruptcies can provide you an avenue to reduce or completely eliminate certain forms of debt. However, bankruptcy tends to be viewed as a last resort because of its impact on your credit score, and federal law requires that most filers complete a financial responsibility course and satisfy a number of requirements before their debt is discharged. It doesn’t happen overnight. Still, bankruptcy may allow you the chance to start over and work toward creating a better financial future.

Florida Bankruptcy Lawyers To The Rescue

 Coping with your debt can seem overwhelming. Taking steps to resolve it will make you feel better. Having an experienced professional assessing your financial picture can be invaluable. An experienced bankruptcy attorney can not only guide you through the bankruptcy process, but can also advise you on alternatives to bankruptcy which may allow you to eliminate your debt while keeping your credit intact. If you are considering filing for bankruptcy, modifying your mortgage, or are facing unmanageable credit card or student loan debt, The Bankruptcy Team is here for you. To consult with The Bankruptcy Team, PLLC, call or contact us today.