Debt reduction mistakes

Many Florida residents are living with increasing amounts of debt. In most cases, they genuinely want to meet their obligations. However, without guidance from a financial professional, people often make serious mistakes that either slow down their debt repayment or make matters worse.

The first mistake that many people make is not making a debt repayment plan. Instead, they may make some resolutions about spending or paying off debts without working out a realistic budget that includes a sum that can be applied toward debts each month.

Another common mistake is a failure to address the cause of one’s indebtedness. There are variety of reasons why a person might be in debt. Job loss, health problems, an unexpected accident or disaster or simply living beyond one’s means are just a few. In some cases, a person may need to seek professional counseling or other help to address specific behavioral issues, such as overspending or gambling.

Other problematic behaviors include the use, and misuse, of credit cards during a period of debt repayment. When attempting to pay down balances, individuals usually benefit from not using the cards at all, even if the card is currently offering a low promotional interest rate or incentives such as airline miles or cash back. A wiser move is to pay for things using cash or debit cards.

Individuals who are looking for debt relief and are finding that self-help methods are not working may benefit from speaking with an experienced bankruptcy lawyer. One alternative could be filing for Chapter 13 bankruptcy, and the lawyer can outline the eligibility requirements as well as the procedures.