Going to college is a fantastic experience, but with it comes immense debt for many individuals. If you've graduated with student loans, credit card debt and other debts, you may wonder how you'll ever pay it all off. One technique is a debt snowball, which could help you get back on track with your finances.
Did you spend 2016 trying to get control of your debt problem? How many phone calls did you answer from harassing creditors? How many letters came in the mail? Perhaps you have even found yourself facing the threat of home foreclosure.
Credit card debt can get out of control quickly, thanks to high interest rates and late fees. Many people are left in a position where catching up is simply not a possibility. When exploring solutions, a recent article from U.S. News & World Report suggests attempting to negotiate with the credit card company.
When debt becomes overwhelming, one of the biggest challenges is determining which bills to pay first. Do you prioritize installment loans like mortgage payments and car payments, or do you focus on credit card debt and other high-interest debt? What if there are medical bills in the mix as well?
There is a lot of misinformation about bankruptcy going around. Unfortunately, people often accept this misinformation as fact. They allow themselves to suffer under a growing debt load because they think bankruptcy is bad or that it will somehow harm them. They suffer through creditor harassment, wage garnishment, foreclosure and more. All the while, their debt grows further out of control.
Leading up to the April 18th filing deadline, as you assess your financial situation and prepare your tax return, you may come to the realization that your debt has grown out of control.