Many people in Michigan have accumulated more credit card debt than they can pay. Calls from debt collectors are both a familiar and unpleasant experience. Most collection agencies and their employees obey state and federal law in dealing with debtors, but some companies ignore these restrictions and cause individuals much unnecessary anguish.
Last week's post discussed how people in the Detroit metro area are incurring less debt on mortgages and home equity lines but are more willing either to take out a loan on a car or to incur credit card debt in order to front living expenses. While some see this as a sign of economic recover, it can also be a sign that financial trouble is brewing down the road, when the next economic downturn hits.
Many Michigan residents have turned to bankruptcy in order to get relief from financial obligations so that they can rebuild their lives after a business failure, a job loss or some unexpected emergency. When a Michigan resident files bankruptcy, he or she rightly expects that most of his or her debt will be discharged and thereby uncollectible.
Our Detroit and southeastern Michigan readers may recall that last week's post discussed how people who are in financial straits should consider managing debt when there is simply too much month at the end of the money.
People who live in the vicinity of Detroit know that the city and its surrounding communities have faced tough economic times. Because of this, many residents may find themselves facing a financial challenge that leaves them overwhelmed by the debt and other financial obligations that they have to meet.
There often comes a time when Michigan residents deal with financial problems. No matter how big or small those problems are, it is important that these issues are addressed. Ignoring them only adds to the problem and when it comes to credit card debt, individuals may face creditor harassment and be turned over to collections. In these situations, debtors should understand their rights, as well as their options, when seeking debt relief.
For Michigan residents who are struggling with credit debt, this holiday weekend may be the perfect time to put into practice a few tips that could lead to freedom from debt.
Anyone with even a passing grasp of finance can confirm that two types of debt exist -- good debt, like many mortgages, and bad debt. The worst kind of debt is credit card debt, as many Michigan residents can attest, partially because of its high interest and its tendency to monopolize on poor spending habits to dig consumers in deeper. Thankfully, for those suffering under a heavy credit load, there are a variety of options available to assist in reducing and even clearing existing debt.
Americans are getting a handle on their debt in the short term, but long-term financial planning still needs some work, according to a new study. The Consumer Financial Literary Survey conducted this year shows that consumers are bringing their credit debt under control, but are still struggling with preparing for the future. This points to a need for increased financial education, according to some experts. Michigan consumers may be interested in some of the conclusions reached as a result of the study.
Few Americans are strangers to debt in the modern world. Credit card debt is particularly prevalent in the business and personal finance landscapes as Michigan residents attempt to negotiate the waning years of the economic recession and take stock of the debt accrued during these challenging times. A variety of strategies are available to help counter the negative effects of debt on American families, from simple spending habits to bankruptcy.