Debt may negatively impact health and lifestyle

Many people in Florida carry debt loads that they cannot easily manage. Individuals often go into debt with no plan about how they’ll get out and with little feeling of urgency about paying the debt off. There are tremendous benefits, though, to paying down personal debts sooner, and serious consequences for leaving them until later.

In terms of concrete monetary savings, paying down debts makes a lot of sense. Accruing interest is one of the most pressing reasons to do so as fast as possible. Making only minimum payments on a credit card with a high interest rate, for example, lengthens the repayment process and increases the total amount of money required to repay the debt. It’s usually a good idea to pay as much as possible on high-interest credit cards until they’re paid off. Many benefit from a budget reevaluation or picking up extra work to contribute more toward debt service.

Outstanding debt is also one of the main factors that can hurt a person’s credit score. Roughly 30 percent of the total credit score depends on how much money the individual owes to creditors. Reducing outstanding debt is therefore among the most important steps a person can take to improve his or her credit score.

Debt can also impact physical and mental health. The requirement that time and energy be focused on debt can cause stress and social or personal problems. People who have growing debts are at higher risk of depression or anxiety.

Individuals who are struggling to pay down debts might want to consult a lawyer with experience in bankruptcy law may be able to help by suggesting avenues of potential debt reduction or relief. One of them might be filing a Chapter 13 petition if the client has a regular source of income. This enables debts to be reorganized and repaid over a period of three or five years.