Debt can weigh heavily on the mind of the typical Florida resident, with worrying thoughts intruding on otherwise peaceful activities. Although most people try their best to pay off their debts, the task often feels insurmountable. With growing balances and shrinking disposable incomes, some people would even give up their most beloved activities to get rid of debt. Luckily, a debt repayment plan through Chapter 13 can provide debt relief without anyone having to take drastic measures.
According to a recent survey, debt is almost as American as apple pie. Nearly three quarters of Americans have at least one kind of debt, which can create an enormous burden on the individual. While some people might think that certain individuals or generations might be more likely to accrue huge amounts of debt, this might not be the case. Virtually anyone in Florida can find themselves in need of debt relief through Chapter 13 bankruptcy.
Virtually no one plans to fall behind on their bills, but many people in Florida find themselves in this exact position. When consumers still cannot get caught up despite their best efforts, creditors will sometimes turn to wage garnishment. Not all debts may be repaid through the garnishment of wages, although many can, including back taxes, student and personal loans, child support and legal judgments. Facing garnishment is not necessarily an impossible situation, though, and consumers have options when dealing with the process.
The student loan crisis does not appear to be going anywhere anytime soon, and that is perhaps because of the very few options that borrowers have for dealing with this type of debt. Many people in Florida felt optimistic about a program that was intended to provide debt relief for public service employees, but that positive outlook seems to be fading. The Public Service Loan Forgiveness program has only helped 96 people in its 11 years of existence.
The idea of avoiding debt seems straightforward. If you do not spend more money than you have, you can live debt-free. Unfortunately, it is not always as easy as it sounds. In a consumerist society, it can be hard to control your spending and manage money wisely-aside from all the emergency expenses that may drain your savings.
The current economy climate is looking considerably better than it did even just 10 years ago. In the decade following the Great Recession, unemployment rates have hit a record low and borrowing by the average Florida consumer seems to be going strong. Still, delinquency rates for credit card debt and auto loans are on the rise for some people. Since Florida has the third highest rate for credit card debt, it could be a real problem in the state.
As the second largest category of consumer debt nationwide, student loans are fairly common among Florida residents. Unfortunately, so is defaulting. Approximately one million borrowers default on their student loans every year. For those who think they may default on their own loans, Chapter 7 bankruptcy could provide much needed debt relief.
T-Pain is probably most well-known for his musical prowess, but music fans might be surprised to learn that the rapper recently lost his Florida home. Home foreclosure can happen to anyone, but there are steps that homeowners can take to stop or prevent the process altogether. However, individuals must be proactive in their approach.
Significant financial changes can leave some Florida homeowners short when it comes to paying their monthly mortgage. Short sales are often billed as an effective way to stop home foreclosure, even if it means that the owner has to sell the house and move out. While a short sale can be effective at stopping foreclosure, there are also some significant consequences that should be considered.
Most categories of consumer debt are on the rise, including credit cards, auto loans and mortgages. None of those, however, are increasing nearly as fast as personal loans. Although Florida consumers take out personal loans for a wide variety of reasons, many are using them as tools for debt relief.