Many Florida residents might think of skiing the Alps or scaling the top of Mount Everest when they hear words like snowballs and avalanches in the same sentence. Not many, however, would conjure up images of credit card debt. Yet, these things are connected in the financial world.
The mortgage crisis in 2007 forced many homeowners in Florida and throughout the nation to find ways to keep their homes. Home foreclosure activity continued to rise in the state, according to a property and real estate data provider. However, there is a positive trend occurring in the industry, particularly in Southwest Florida.
Many Florida residents and others across the nation have concerns about theirs finances. A personal finance columnist routinely addresses questions from consumers regarding all aspects of money issues. For example, a recent topic addressed whether it was more beneficial to maintain an emergency fund in a savings account or to pay off credit card debt.
Homeowners in Florida and around the country work each month to pay their mortgages and remain in their homes. In difficult financial situations, some may seek loan modifications to reduce the amount of monthly mortgage payments. Others may choose to file for bankruptcy in order to keep their home but start with a clean slate to rebuild financial stability. Recently, a consumer affairs columnist highlighted the woes of a couple in another state that believed they had taken the necessary steps to keep their house but now face home foreclosure.
Many Florida residents and others across the country experienced financial difficulty in the recent mortgage crisis. In efforts to avoid foreclosure, some homeowners started the loan modification process. Working with financial institutions to lower monthly mortgage payments enabled some to stay in their homes. Despite following instructions from their bank, one couple's efforts to get their loan modified resulted in unexpected foreclosure proceedings.
Credit cards are a convenient method of payment for Florida residents. Many consumers are often able to pay their entire balance each month and incur no or very little interest expense. However, some households struggle to manage credit card debt. Reports show that the average amount of debt is about $5,700. However, for those people who do not pay balances off each month, the level of credit card debt is over $16,000.
Filing for bankruptcy is not as simple as submitting a document, walking away from debts and starting over financially. Every move you make can affect how the court determines your bankruptcy case. Therefore, you need to ensure you take the right steps not only after you file but also before. One action you may be considering is using up all the money in your savings account either to pay off as much debt as possible before declaring bankruptcy or to protect it from creditors. Either way, you need to be aware of the following information before you deplete your savings.
Some Florida residents may find themselves struggling financially. Many may miss mortgage payments or are chronically late in submitting the payment. Consumers might pay only the minimum amount due on credit cards each month or start using the cards more frequently for day-to-day expenses. When financial concerns continue to mount, someone may consider filing for Chapter 7 bankruptcy to alleviate the financial stress.