Help With Bills
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Help with Bills
Financial challenges are a part of life for most people. Whether they are struggling to make ends meet as young adults or they face unexpected – and expensive – medical challenges as they grow older, the average person will have at least one or two phases in life where money is an issue.
Unfortunately, needing help with bills can go from a minor challenge to a full-blown crisis in just a short time. For many, money challenges last a long time and require a serious solution. Though a financial crisis such as this might be less common than the average struggle to make ends meet, it’s still fairly common. People all over the country deal with serious financial problems on a daily basis.
What should you do if you need help with bills and your financial situation continues to look bleak? Luckily, you can improve your situation and alleviate the stress and frustration that comes with money problems.
Where should you begin if you need help with your bills?
Understanding Debt
Debt is one of the primary reasons people face financial challenges. Over time, debt can accumulate and spiral out of control. This is due in part to the fact that debt is big business.
What does this mean?
First and foremost, debt is expensive for consumers. “Borrowing” money on a credit card or mortgage or for any other type of purchase means you owe the lender money. And in most cases, lenders charge a fee for allowing you to borrow money. This comes in the form of interest and fees associated with the loan.
In some cases, the interest on a loan can be just as expensive as the loan itself. For instance, a mortgage for $150,000 could end up costing you $300,000 once all is said and done.
It’s easy to see how consumers get into trouble with debt and to see how lenders can easily take advantage of the situation.
In addition to understanding how expensive debt can be, it’s also important to understand the different types of debt there are, especially if you get into a crisis and need help with bills.
Debt can be secured or unsecured. Secured debt means there is real property backing up the debt. A mortgage is an example of secured debt because there’s a house involved. Unsecured debt means there is no real property backing it up. Medical debt or credit card debt are examples of unsecured debts.
One of the main differences between unsecured and secured debt has to do with how they are handled in bankruptcy. If a debt is unsecured, in most cases, it will be dischargeable. This means that the lender cannot take any real property from you and the court will discharge the debt – which means you won’t need to pay it once you’re bankruptcy is complete.
Secured debt, on the other hand, must be handled differently in a bankruptcy filing. You’ll need to protect the property associated with the debt, which can be done through an exemption, or you risk losing that property.
Getting Help with Bills
Now that you understand the different types of debt and how they might be handled in bankruptcy, let’s take a look at what filing for bankruptcy can do to help your situation. For many, bankruptcy is the best option when they are struggling financially and need help with their bills.
One of the most common instances in which bankruptcy is used to alleviate problems is with medical bills. Medical bills are dischargeable, which means bankruptcy will release you from your obligation to pay. Considering many people face medical bills that total hundreds of thousands of dollars, bankruptcy an offer relief and a chance to begin living life again.
Medical debt can be eliminated through both chapter 7 and chapter 13 bankruptcy plans. In chapter 7, you are able to eliminate all of your medical bills. In chapter 13, you can protect your home and other valuable assets, while committing to a three to five year payment plan that makes your medical debt and other bills affordable. At the end of the chapter 13 plan, your medical debts are discharged.
In addition to medical debt, bankruptcy can help with a number of other bills. Those who have accumulated past due balances on their utility bills can enjoy the benefits of bankruptcy and avoid shut-offs of certain utilities including water, electricity, and gas. Bankruptcy can also alleviate issues with television, phone, and internet bills on a case by case basis.
Perhaps the reason most people consider bankruptcy is because of credit card debt. Americans have an astronomical amount of credit card debt and for many, this debt is insurmountable. If you are drowning in a sea of credit card debt that keeps climbing because of interest, late fees, over limit fees, and other issues, you are not alone. Luckily, bankruptcy can help you get a handle on this debt and in many cases, eliminate it entirely.
Getting help with bills should not be something you feel embarrassed or ashamed of doing. Nearly everyone faces financial challenges and just because yours seem worse than some does not mean you are alone. Bankruptcy can provide relief and the opportunity you’ve been wanting to make a fresh financial start. It can even help you protect your home and other valuable assets.
Best of all, bankruptcy is a tool that actually allows you to improve your situation. Many of the options available to you when you’re facing financial challenges are just temporary solutions. And in some cases, what you do to improve your situation could actually make the problem worse. This is not the case with bankruptcy.
If you’d like to know more about bankruptcy or you need help with bills, we’re here for you. Contact 1.800.220.4318 for more information.