Worried about credit card debt and wondering what your options are?
Don’t worry – you’re definitely not alone in this fight. According to a 2015 study by NerdWallet, the average household has $130,922 in debt — with $15,762 of it coming from just credit cards.With rising interest rates and stagnant wages, American consumers can likely expect to see more of the same over the next few years. With our Federal Reserve poised to raise interest rates even further in the months ahead, the situation facing many American families may turn even more dire.
In our experience, we tend to notice more and more people calling when their situation becomes so overwhelmingly stressful that “normal” daily life isn’t possible anymore. Most of us have experienced the scenario at some point: bills keep coming in, there isn’t enough money to pay them, and we’re stuck trying to figure out how to fulfill all of our obligations to our families and employers. Let’s be honest – it’s not fun, and there is a reason some people refer to debt as the other four letter word.
There have been many studies about the psychological and emotional effects of debt on an individual and a household… and no surprise here, but none of them are good. We can expect to experience: depression, anxiety, resentment, denial, anger, regret, shame, embarrassment, and fear.
Don’t worry, that’s why Pacific Debt Inc. – San Diego based Top debt consolidation and debt relief company is here and we’re going to strive to be your advocate and win the battle against debt.
Is not being approved for a debt consolidation loan a bad thing?
In most cases, being denied a new loan is going to be in your best interest. When you look at the numbers after paying the new loan origination fee and actual overall cost of the loan, you’ll probably have some regret. If you were approved, you’re only solving one problem with another problem. For more information, read the guide we wrote on debt consolidation loans as well as learn more about some of the dangers of new loans if you don’t address spending habits.
Thinking about filing Bankruptcy?
Most people know of bankruptcy being the only debt solution available to them when they’re in a dire financial situation. This is reinforced by the thousands and thousands of attorneys telling you with paid advertisements that they’re going to reduce your debt “the legal way”.
What they don’t make abundantly clear is that bankruptcy is your last lifeline in the debt relief world and should only be discussed as the very very very last resort. Although Chapter 13 bankruptcy can in fact drastically reduce your unsecured debt obligations and put you on a realistic 3-5 year payoff plan, it has long-lasting undesirable consequences.
Chapter 7 bankruptcy on the other hand is a different monster altogether. In this scenario, you may be forced to sell off many of the assets that you or your family has accumulated over the years and hand over the proceeds to your creditors as payment.
For many clients and prospective clients that we speak with, their personal credit score is always a major concern. When you start the bankruptcy process, say goodbye to the thought of having a favorable or lend-able credit score for the foreseeable future. Additionally, your bankruptcy will be a public record and be reflected on your credit reports for the next 7-10 years. There are other side effects of filing as well, and you can read more in detail about them in our bankruptcy guide.