Numerous Michigan residents are among the many Americans who are drowning in debt. When it all becomes too much, it is normal to question how one should address the issue. Thankfully, this is not a problem that one has to figure out all alone. A bankruptcy law attorney may be able to help.
According to a recent report, Americans are said to be over $12.7 trillion in debt. The most common types of debt include student, medical, mortgage and auto. All of these can add up pretty fast, and if one experiences the loss of a job or anything else that creates a financial hardship, the ability to continue meeting one’s debt obligation can get pretty hard.
Would anything happen if one simply stopped making payments? Skipping some payments certainly may be tempting, but doing so can have some serious consequences. Not only will it end up hurting one’s credit score, it can also result in a person losing his or her home, car and other basic needs.
So, what are the options? It is generally recommended that people continue making whatever payments they can to creditors. If money is simply too tight, calling creditors and trying to work out a new payment arrangement may solve the problem. If a lender is unwilling to budge — which is fairly common — Michigan residents may turn to other debt relief options, such as bankruptcy. A bankruptcy law attorney can review one’s financial situation and help one pursue the debt relief options that will best serve his or her interests.
Source: msn.com, “Here’s what happens if you don’t pay off the most common types of debt”, Abigail Hess, Aug. 11, 2017