Like millions of others before you in the US, you may have decided to file bankruptcy due to an overwhelming amount of debt. You probably never expected to be in such a position, but life is full of surprises and unfortunately, they are not always good when it comes to finances. If you have been struggling with a torrent of medical bills after a car accident, the loss of your job, a difficult divorce, or maybe even all these events in the past few years, filing for bankruptcy may be the best solution.
The goal behind filing for bankruptcy is to pave a new financial path for yourself, free of debt. The stories behind bankruptcy vary, however, and are often the result of unexpected, even catastrophic events. And just because something happens once, unfortunately, does not mean it can't happen again.
Filing for bankruptcy is a major step, and probably not something you ever wanted to do. You may have been in a major accident, or you or a family member may have experienced an extended illness that resulted in insurmountable medical bills. Budgets may have been cut at work, or you may have found yourself out of a job altogether. Often, there are other accompanying factors too, like divorce, overuse of credit card due to lack of income, and more.
Are you overwhelmed with debt, having reached the point where you can barely pay for the essentials, much less satisfy pay your creditors? You may have been doing your best to cope with escalating financial distress for months now or even years, but have finally decided to explore bankruptcy as an option. While this may be the smartest solution for gaining firm control of your finances, it can also be a difficult decision to make.
Using credit cards and promptly paying off monthly balances is often touted as a smart and easy way to boost one's credit score. But life isn't that simple. A spouse may lose his or her job, a child's illness may require an unplanned trip to the ER or a furnace could break down in the middle of January. Many middle-class American families simply don't have sufficient savings to account for these types of unexpected financial hits.
Many New Jersey residents who are now in their 30s and 40s grew up in families that were considered to be middle to upper class. As such, many likely enjoyed taking family vacations, owned one or more cars and were able to attend and pay for college without accruing massive amounts of debt. Today, however, many of these same individuals are facing a very different reality as they attempt to provide the same standard of living they enjoyed to their own children.
According to the Kaiser Family Foundation, an estimated 33 percent of Americans struggle to pay medical bills. No one is immune to medical debt and many of those who report having difficulty paying medical bills are insured through job-based group plans. However, even with health insurance coverage, individuals often fall victim to the unknown and high costs associated with out-of-network charges.
Most New Jersey residents have at least one credit card and likely receive many more credit card offers in the mail each week. Through flashy marketing materials, banks and credit card companies aggressively market to American consumers, promising 0 percent interest rates and appealing debt transfer options. In recent years, these financial institutions also began offering other so-called "add-on" products promising consumers debt cancellation protection in the event of job loss or identity theft
Life is full of surprises, many of which are accompanied by unexpected expenses. When a car breaks down or a plumbing emergency occurs, New Jersey residents may need to rely upon credit cards or cash advances to make ends meet. So-called payday loans offer short-term loans at a high interest rate to consumers who may be unable to secure a credit card or other type of personal loan.