ARE your growing debts causing you sleepless nights? Are you trying hard to pay what you can every month but feel like you’re just running on a treadmill? Do you get that sick feeling in your stomach every time you realize that you have gotten yourself in more debt than you can actually pay back?
If it’s any consolation, you’re not alone. According to a recent survey, about one-third of households in this country are either just barely making it or are having trouble paying their debts each month. The Federal Reserve Board reports that the American consumer debt is now at a record $2.5 trillion! For the first time in history, average Americans owe more than they make. ABC News reported that in the last decade, credit card debt has increased 81 percent while the average family’s income grew only by 9 percent. This is scary.
If you are like the rest of the population and your debts are growing a lot faster than your income is, how can you avoid debt from creeping up on you? The banks and the credit card companies know that when income is short, most people will resort to borrowing to make up for the shortage. So now you know why consumer debt is steadily increasing. Unless you get a handle on your finances and control your borrowing, you would be buried in a deep financial hole before you even realize it.
A lot of people owe so much that they will never pay off their debts in their lifetime. Some of them have reached a point where they don’t even know how much they owe anymore. The only thing they do know is that they are broke every payday. They have zero savings and no money for unexpected emergencies. Any disruption or reduction of income can turn into a major financial emergency. Financial planners tell us that we should try to keep our debt-to-income ratio below 36 percent (about 28 percent for housing and 8 percent for other recurring debt payments). What’s your ratio?
If you are caught in a vicious cycle of borrowing, you need to realize that this is a sure path to financial catastrophe unless you have the means to pay it all back. The first step is to review your finances in detail and know exactly where you stand, and then come up with a strategy to change course. Consult with an experienced and knowledgeable bankruptcy attorney in order to avert a potential financial disaster.
Call my office at 866-477-7772 and request a free one-hour consultation to so that we can help you get out of debt and you can start fresh in 2015. DO IT NOW.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1 (866) 477-7772.
