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Debt Relief Archives

Young professionals and medical debt: Negotiate a better deal

As a young professional, you have a lot on your plate in regards to your finances. Not only are you in the process of getting your career off the ground, but you may be faced with mounting debt. For example, student loans have a way of biting into your monthly income. The same holds true for other expenses, such as rent and car payments.

Reasons people get trapped in debt

Even people with good jobs get trapped in debt. One study found that about 33 percent of households with an income of at least $75,000 per year -- and often more -- still lived from one paycheck to the next. Other studies have found that most Americans -- 73 percent -- don't even have $1,000 saved up, and the average credit card debt stands at a comparatively staggering $16,000.

What are some indicators that you need debt relief?

We all face debt from time to time, and many types of debt -- like taking out a mortgage or buying the groceries on a credit card -- are an accepted part of everyday life. However, what are some signs that things have gone too far and you need to look into your debt relief options?

Have you been sued on an old debt?

You may have accumulated some old credit card debts at one time and the credit card company may have attempted to collect. Maybe you were just out of school, trying to find work or were between jobs and you had little or no income. The company may have eventually given up its efforts and stopped contacting you about the debt.

What's in a name?

When you decide to buy something, you may decide to use a credit card or obtain a loan. But there is another option. It is known as "rent to own," and it looks a lot like an installment loan or a revolving credit agreement. You make regular monthly payments for the item, and if you complete the full term of the agreement, you then own the item.

Would debt consolidation really work?

Easy credit. We have all seen and heard the phrase. For most people, it is easy to obtain numerous credit cards. And each one comes with an incentive to spend. Some people can soon find themselves deep in debt and in deep trouble with those credit cards. It can be due to not keeping your eye on your finances, and as your income increases, you may increase your spending, believing that you can spend more because "you can afford it."

If I file a bankruptcy, can I still get a home loan?

One of the ways that creditors try to scare people away from filing a bankruptcy is by claiming it will "destroy their credit." Admittedly, filing a bankruptcy will not improve your credit rating or FICO number. Of course, you are not filing a bankruptcy in an attempt to improve your credit; you file to eliminate overwhelming debts or restructure your debts to a manageable amount.

What should you do to get out of debt? Pt.2

When attempting to get out from under overwhelming debt, other options include credit counseling companies or debt settlement companies. If you take either of these steps, you need to educate yourself and learn exactly what each company promises. You want that information in writing before you agree to anything or send any money.