Personal debt, also commonly referred to as consumer debt, includes any debt you have accumulated in order to pay for expenses or goods that are used for personal reasons. With this type of debt, you are personally legally responsible for paying it back. Personal debt is typically categorized into two main categories: unsecured and secured debt (borrowing that has been done against collateral that will be forfeited if the borrower should fail to pay back the loan). It’s no surprise that more and more individuals are finding themselves in serious personal debt since it can easily get out of hand due to the easy accessibility and promotion of credit cards, student loans, auto loans, and more. Whether due to high interest rates, inability to make payments, or other circumstances, high levels of personal debt can be difficult to pay off and seriously impacts your financial health.
Getting out of debt can be difficult if you don’t know where to start. Fortunately, Community Tax provides many resources that can help you make a plan (and stick to it), so that you can get out of debt and move toward a more secure financial future. Some of the most important steps you can take to lower your personal debt include creating a budget, paying more than the minimum payments, and refraining from acquiring new debt. While it might not be as easy for all individuals, especially those with limited funds, you can start making progress toward getting out of debt if you are determined and have the right resources to refer to, which is where we come in.
Community Tax provides helpful articles that can help you understand debt, recognize that you’re in a cycle of debt, and make a plan to get your personal finances in order. And, if you find yourself in debt that you don’t think you can realistically pay off, you may have the option of filing for bankruptcy. There are several different types of bankruptcy, but generally speaking, a bankruptcy can halt collections and legal action, and even eliminate certain personal debts all together. The important thing to keep in mind when you’re focused on getting out of debt is that you’re not in it alone; there are plenty of resources at hand tackle this challenge, no matter how much interest you’ve accumulated over the years.