Strategies for getting out of debt

In 2017, total student loan debt is roughly $1.4 trillion while the average student loan debt for a college graduate is $34,000. This debt may make it harder for some Florida residents to own a home or start a family. More than half of millennials carry credit balances from month to month, which means that they are charged interest on that balance in addition to other fees.

Complicating the issue is the fact that millennials make less today in real dollars than at any point since 1980. According to a recent study, 40 percent of respondents said that they would rather talk about their health issues than their debt. However, ignoring the problem is not going to make it go away. To get out of debt in a timely manner, young people are encouraged to face their debt issues head on.

Individuals should consider requesting an interest rate reduction to make their debt more manageable. Lower interest rates on credit cards enable people to pay more towards their principal balance. CPAs and other professionals may be able to help someone maximize the potential tax benefits of being in debt.

Those who are struggling to keep up with student loan or credit card payments may benefit from filing for bankruptcy. Doing so may also halt constant creditor collection calls or letters. While student loans generally cannot be discharged through bankruptcy, it may be possible to reorganize that debt or negotiate new payment terms to make them easier to handle. In Chapter 13 bankruptcies, debts are repaid according to an approved plan over a three- or five-year period. Afterward, any remaining balances may be discharged.