A State-by-State Guide to Filing for Bankruptcy Protection: Georgia

Bankruptcy laws vary from one state to another. Here is a breakdown of Georgia bankruptcy guidelines to help you understand the differences when filing for Chapter 7  Bankruptcy vs. Chapter 13 Bankruptcy.

Georgia Bankruptcy Guidelines

A Georgia bankruptcy lawyer will probably begin your consultation by explaining the difference between Chapter 7 and Chapter 13 bankruptcy. This often includes what is called a “means test.” This involves asking some very personal questions about your assets, debts and your financial goals. The answers you provide to these questions will help you and your bankruptcy lawyer determine if filing Chapter 7 or Chapter 13 bankruptcy is right for you.

Chapter 7 bankruptcy is usually called “liquidation” because the bankruptcy trustees in Chapter 7 bankruptcy cases may opt to sell any non-exempt property the debtor owns. In many Chapter 7 bankruptcy cases, the debtor does not own any non-exempt assets, so no property is sold. Unsecured debts may be completely discharged in Chapter 7, making it an attractive bankruptcy option.

If you are filing Chapter 7 bankruptcy, find out from your Georgia bankruptcy lawyer which and how much of your assets may be exempt from liquidation.

Georgia State Bankruptcy Exemptions

Homestead

* $10,000 for real or personal property, $20,000 if property owner is married.

Wages

* 75 percent of weekly earnings.

Automobiles

* Your interest in up to $3,500 in all motor vehicles.

Personal Property

* $1,500 for any implements, professional books, tools of the trade.
* Up to $300 in value in any one item.
* Up to $5,000 in household furnishings, good, clothes, appliances, books, animals, crops or musical instruments.
* $500 in jewelry.
* Certain retirement and insurance benefits may be fully exempt.

Note: Keep in mind all state bankruptcy laws and exemptions are complex. If you need legal advice or want to fully understand how Georgia laws affect you, please speak with an attorney in Georgia. State bankruptcy laws are subject to change at any time. For the latest information, read the full text of Georgia bankruptcy laws.

Links to Georgia Bankruptcy Lawyers:

moneylawyer.com

thebklawyer.com

In today’s world there are no shortage of people with debt management issues. So where do you go for debt management help? Here are a few quick tips from the debt management expert…

1) Go to Debt Management Expert web sites: This site is organized to give you helpful advice on a variety of debt management issues. We are specifically looking at large issues involving your home and credit. We also recommend that you look to other debt management sites to get helpful tips. There is no substitute for reading up on the issues that you face and looking at how different experts recommend you approach those issues.

2) Talk to people who may be in similar debt management situations: They may not be debt management experts but they certainly will give you another perspective. It may be uncomfortable but it is highly likely that someone in your situation has tried something to help their situation that may actually help your situation. If you don’t know anyone directly join a debt forum and learn in a more anonymous fashion.

3) Explore debt management and debt settlement companies as potential debt management experts: These companies can help but there a both pros and cons to working with them. Make sure you really understand what you get out of this before taking the dive. Many are debt management experts but they are also trying to make a buck. For more information on this read our recent post: Enrolling in a Debt Management Plan to Help Your Monthly Budget and How Debt Management and Debt Settlement Companies Can Simplify Your Financial Life.
4) Attorneys as debt management experts: Talk to a bankruptcy attorney or a loan modification attorney. Attorney’s can be a good solution if you need to modify your loan or if you are considering bankruptcy, but again this comes down to your specific situation. Don’t limit you conversation to one attorney. Talk to several if you go this route and then toughly reference them to make sure that they are debt management experts with good track records.

If you spend the time to do all these well, the next time you look in the mirror you may see a Debt Management Expert.

Related Articles:

• 15 signs: When to call a debt expert
• 5-minute guide to managing debt
  

There has been lots of press on the topic of Loan Modification. You can negotiate with your bank to modify your loan yourself or by using a third party expert negotiator or law firm. The government has also now gotten involved and set up a special program to help consumers modify their loans but not everyone qualifies for the government’s bailout as part of the government loan modification program. To see if you quality you need to do some basis calculations. Read through our Loan Modification Calculator examples to see if you qualify for a government bailout or loan modification as part of Obama’s loan modification plan. If you do this is a great way to manage your debt and get back on your feet.

Here’s the basic criteria that our loan modification calculator looks at for seeing if you qualify for a government bailout:

To qualify for the government bailout loan modification program you first need to be in a financially distressed situation.

1. You need to have a financial hardship. Take a look at our article on tip to writing a hardship letter as well as sample hardship letters.
2. You have to have little or no money in the bank available to you.
3. Your loan is under the conforming limit in your area.
4. Your loan to value of your home is near or above your current loan amount.

However ….

5.   You need to have some income coming in. It is okay if you have lost some of your income but you need to be able to pay your new mortgage pavements.

If you meet these criteria then the bank look at doing two things:

- The bank will look at reducing your interest rate. To qualify for the government bailout program the bank can lower your interest rate down to 2%. If you already have a low interest rate this may not help.
- The bank will additionally look at stretching your amortization to 40 years.

6.   After adjusting your interest rate and or your term of your loan, the bank will then look to see if you qualify for the government sponsored bailout loan modification. To qualify for the bailout loan your new payment that is calculated must be not more than 31% of your gross income after your principle, interest, taxes, insurance and association dues are considered.

Here are a few examples from our loan modification calculator:

Loan Modification Calculator - Calculation 1
Your income is: 5,000 per month
Your current interest rate is: 8%
Your current loan term is: 30 years
Your current loan amount is: $800,000
Your Tax, Insurance & Ass Fees: $9,000/yr
You have a Hardship: Yes
***** In Bailout Calculation 1: You DO NOT qualify because your loan is over the limit of a conforming loan.

Loan Modification Calculator - Calculation 2
Your income is: 3,000 per month
Your current interest rate is: 8%
Your current loan term is: 30 years
Your current loan amount is: $400,000
Your Tax, Insurance & Ass Fees: $5,000/yr
You have a Hardship: Yes
***** In Bailout Calculation 2: You DO NOT qualify because even if the bank drops your interest rate to 2% and stretches your loan to 40 yrs, your payments on your loan are $1,211. If you add to that your tax, insurance and association fees you are now at $1,628 per month. Unfortunately that is 54% of your monthly income so you do not qualify for the government bail out program.

Loan Modification Calculator - Calculation 3
Your income is: 6,000 per month
Your current interest rate is: 6%
Your current loan term is: 25 years
Your current loan amount is: $400,000
Your Tax, Insurance & Ass Fees: $5,000/yr
You have a Hardship: Yes
***** In Bailout Calculation 3: You DO Qualify because if the bank drops your interest rate to 2% and stretches your loan to 40 yrs, your payments on your loan are $1,211. If you add to that your tax, insurance and association fees you are now at $1,628 per month. This is 27% of your monthly income so YOU DO qualify for the government bail out program. Likely the bank will not drop your rate to 2% in this case since they do not need to have you qualify.

If you qualify some of the other benefits to the government’s bailout program are:

1. Once the program is in place your loan will not change rate for 5yrs and even then it can only adjust 1% per year for a maximum of 5% points above your start rate.
2. If you are on time with your payments for 5 years, you get a one time reduction in your principle of $5,000 at that time.

Other Relevant Articles:

• How to use loan modification calculators

Enrolling in a debt management plan
Signing up for a debt management plan may give you more breathing room in your monthly budget, but will it hurt your credit? Not as much as you may think. Using a debt management plan to pay off debt won’t hurt your credit score, but it may make it difficult to qualify for new credit.

Debt management plan: Protecting your credit score
When you enroll in a debt management program, you write a monthly check to a credit-counseling agency and the agency pays your creditors. A debt management plan usually lasts three or four years. A notation stating that you are paying an account through a credit-counseling agency appears on your credit report and remains until the account is paid in full. Paying an account through a credit counseling agency will not hurt your credit score.

Debt management plan: Qualifying for new credit
Participating in a debt management plan could make it difficult for you to qualify for additional credit, and some debt management plans prohibit consumers from applying for new credit anyway.

Some creditors may see that a person is in a debt management plan and decide that they have all the debt they can handle. Other creditors might view participation in a debt management plan as a positive step, a sign that a consumer has taken responsibility for and is serious about paying off debt.

The more a creditor bases a lending decision on a consumer’s credit score, the less a consumer’s participation in a debt-management plan is likely to matter. A typical creditor uses the FICO score. They don’t look at notations on the account. Paying off a big chunk of debt on your own or with the help of a debt management plan will give your credit score a boost.

Debt management plan: Late payments hurt your credit score
What will hurt your credit score? Not debt management plans. Instead, being 30 or 60 days late with any payments can adversely impact your credit rating. Those negative marks hurt your credit score and can mar your credit report for up to seven years.

Debt management plan: Choose wisely
It is very important to choose a debt management plan carefully. If the agency administering the program misses or is late with a payment, it is your credit record that gets impacted. Enrollment and monthly fees for debt management plans vary widely. Some companies may charge several hundred dollars for their services, while others charge monthly fees of $20 or less.

With a debt management plan, a consumer usually gets reduced interest rates, lower monthly payments, no more late fees and fewer calls and letters from creditors. Debt-counseling agencies get their operating money by receiving a percentage of each client’s payments back from creditors.

If you are current on your bills, you may want to try negotiating new payment amounts and lower interest rates with creditors on your own. You never know what kind of deal you may land. And you may be able to make real headway on your debt by simply tightening your belt for a few months and freeing up more cash for debt payments.

Debt management plan: Monitor your debt counselor
If your situation is more serious or you just feel plain overwhelmed, you may want to talk to a debt counselor. If you decide to sign on for a debt management plan, be sure to monitor your credit bills carefully. Is the agency paying your bills on time as promised? You need to be vigilant and look at your statements regularly.

If you discover a problem with bills paid through a debt consolidation company or credit counselor, report the company to a local consumer protection agency or state attorney general’s office. You can also file a complaint with the Better Business Bureau. For more ideas on how to monitor these companies, see some of the suggestions by the FTC on Debt Management Plans.

Related articles

• Debt Management Plans vs Bankruptcy (Bankrate.com)

• Weighing the Options With Credit Card Debt (nytimes.com)

• Get a Handle on Your Debt (alwaysbcmom.com)

• Don’t Carry Debt To Improve Your Credit Score (bargaineering.com)

Examples of Debt Management Companies

• Money Management International
• National Foundation for Credit Counseling
• Balance Financial

Overview
Have you ever tried managing your money by creating a personal budget and sticking to it? Do you find that managing your money works or does it seem like a waste of time? The hardest part about managing your money by creating a personal budget is using information from it to modify your spending habits.

With any household budget when you are trying to manage your money, you should be trying to prevent overspending, not only on the large, more infrequent expenses such as vacations, major repairs, end-of-the-year holidays as well as birthdays, but also on the day-to-day and monthly expenses that you incur throughout the year. Only after you have a handle on what and how you are spending does sticking to a household budget make sense and seem worthwhile. It is important to have control over your expenses, even if money management does seem to be somewhat illusory.

——————–

One recommended approach to managing your money by creating a personal budget is to carefully track your spending during the month and then adjust your budget targets up and down in each category, so that your total expenses never exceed your income.

There are many software programs that can help you create a personal budget to track your expenses, however those programs can only display results based on the information provided by you. It is up to you (and your significant other, if applicable) to designate categories for each type of expense in your household budget.

While those categories in your household budget only need to make sense to you, expenses allocated to those “buckets” should be done consistently so that you can track and compare expenditures over time. It rarely matters what you are overspending on — dining out, entertainment or clothes, for example. What matters more as far as managing your money is knowing where it was spent and how that amount differed from the same time period measured previously, for example, so you determine how and where to best change your spending habits within your household budget.

Whether you would like to buy a new or newer car, put a down payment on a new home, or do a major house renovation project – non-discretionary expenses all of which can run into the tens of thousands of dollars in your household budget, you need to be able to carefully track other costs so that you can build the “rainy day” funds to afford those bigger expenses. And when it is anything other than a one-time non-discretionary expense, tracking costs becomes even more significant so that you stick to the household budget allocated for the project.

Understanding Your Expenses
Tracking expenses is helpful, but managing your money also involves understanding the types of expenses in your budget. Here is a list of some expenses, delineated as fixed, committed or non-discretionary that may impact your household budget. Committed expenses are not required for survival, but they are expenses you commit to for yourself or your family that generally impact your household budget and your quality of life.

Fixed (essential)
Home mortgage or rent
Basic food and clothing needs
Essential household expenses
Basic utility bills
Taxes
Student loans

Committed
Insurance premiums
Charitable contributions
Non-essential utility bills (satellite TV service, internet, phone – land line and cellular)
Health/sports club memberships (for self, and spouse and children, if applicable)
Music lessons (for self, and spouse and children, if applicable)
Sports equipment (for self, and spouse and children, if applicable)

Non-discretionary (optional)
Car purchase
Home purchase
Home renovation
Home repairs
New home appliances
Dining out
Entertainment (e.g., movies, theater, sporting events)
Vacations
Holiday/birthday gifts
Other clothing or consumer goods purchases

Establishing a baseline for what is an acceptable allocation of expenses and keeping a lid on your committed and non-discretionary expenses, compared to your monthly and annual income, will go a long way toward helping you succeed with managing your money by creating and sticking to your household budget. Doing so will also provide you the maneuverability to save for retirement, long-term non-retirement savings, as well as to save for “rainy” day expenses and isolated “fun” expenses that you may not want to track in your household budget.

For a lot of people, part of the difficulty in reducing committed and non-discretionary expenses comes from the need to make big monthly credit card payments. If you’re carrying a substantial amount of non-mortgage debt in your household budget, you should cut up your credit cards and aggressively pay down your debt first before allocating funds for long-term and retirement savings, unless you or your spouse’s employer is contributing a matching amount toward that retirement account. Cutting back on matching funds from your or your spouse’s employer is not a good way to manage your money since it is like leaving free money on the table.

The real secret to creating a personal budget that really works is creating a sustainable structure for your finances, one that balances spending and income and that leaves enough room to handle the unexpected.

Related articles

• How to Get Credit Card Debt Relief (slideshare.net)
• Get Useful Tips About Top 5 tips on how to create a home budget (helpwithdebtnow.com)
• Common Cents: Smart financial moves for ‘empty nesters’ (westseattleherald.com)

OVERVIEW
Here are 10 tips to help you increase your FICO score by using credit responsibly.

In order to keep your finances in great shape and increase your FICO score, it is important to use your credit responsibly.

Your FICO score is a score created by credit bureaus such as Experian, Equifax, and TransUnion. Institutions lend money based on the FICO score created by credit bureaus. Here are some tips for keeping the FICO score in good shape.

1. To Increase Your FICO Score, Pay Your Bills On Time
Late payments have a negative effect on your FICO score. Do your absolute best to make sure every payment arrives on time. If you have missed payments, get caught up. The longer you have a good record of paying your bills on time, the more your FICO score will increase.

2. To Increase Your FICO Score, Keep Balances Low on Revolving Accounts
Credit cards are a type of revolving credit. This means you can pay off the line of credit and then use it again. Keep balances low on this type of credit. Having high amounts of credit card debt will lower your FICO score.

3. To Increase Your FICO Score, Pay Off Credit – Don’t Just Move it Around
Moving credit around is not the same as paying it off. Your FICO score will increase if you consolidate your credit. If you have a balance, but fewer open accounts, your FICO score will increase.

4. To Increase Your FICO Score, Don’t Open Accounts Your Don’t Need
People will often open a number of accounts in order to try to increase the amount of available credit. This strategy can often backfire and lower your FICO score, instead of increasing it.

5. To Increase Your FICO Score, Avoid Collection Accounts
Be aware that any account that has gone to collection will stay on your credit report for seven years. These accounts will negatively affect your FICO score.

6. To Increase Your FICO Score, Open Accounts and Pay Responsibly
If you’ve had trouble in the past with credit, it pays to open a new account and use it responsibly. Establishing a pattern of responsible credit use will help to increase your FICO score over time.

7. To Increase Your FICO Score, Avoid Closing Accounts
Closing an account doesn’t make that account disappear from your credit history. Each account you’ve opened and closed will show up on your credit report and will affect your FICO score.

8. To Increase Your FICO Score, Use Credit Cards
People who have no credit history have a difficult time obtaining credit. It’s important to obtain credit early on and use it responsibly. People who do this have higher FICO scores than someone who never uses credit at all.

9. To Increase Your FICO Score, Seek Credit Counseling
If you are in trouble with debt and your FICO score is lower than you would like, it’s a good idea to seek the advice of a legitimate credit counselor. These counselors can help you navigate your credit report as well as help you make a concrete plan to help you increase your score.

10. To Increase Your FICO Score, Remember it Takes Time
Remember, there are no quick fixes for increasing your credit score. It takes time to establish a good credit history, or to repair damaged credit. If you look at it as a process, you’ll be able to create solid goals and to achieve them.

OVERVIEW
Mistakes found on your credit report can be avoided by and/or corrected by following some straightforward procedures.

A big part of being fiscally responsible these days is checking on your credit report. Individuals can get a free credit report from each of the major credit reporting bureaus — Equifax, Experian, and TransUnion — every 12 months. Checking your credit report is as simple as having these bureaus send you a copy of your credit report and looking it over. Most of the time, these credit reports are correct. But what do you do if you find a mistake?

Credit Report: Check Each Credit Card Account
When you check over your credit report, you need to check each credit card account. The information on the open accounts should match the information you have in your records at home. Check each credit card, including card numbers, balances, and payment histories. If a discrepancy is found, you should contact your credit card company and check your information against theirs. If it is the credit card company’s error, they will correct it and notify the credit bureaus during their next reporting cycle. If it is not their error, you will need to check with the reporting credit bureau to see if the error originated with them. If so, you’ll need to send the credit bureau a copy of your most recent credit card statement, so that the credit bureau can correct their mistake.

Credit Report: Check Your Credit Card Payment History
It’s also important to check payment histories. Payment history can help or harm your credit score (your FICO score) and it is important to be sure that these are correct. If you find a discrepancy, find the documentation necessary to prove yourself and send that to your credit card company. These errors may take a little time to fix, but this is something you can do yourself.

Credit Report: Check All Closed Accounts
Check all closed accounts that are listed by the credit bureau on your credit report. Be sure that the credit report shows no balances on those accounts and that all the accounts are closed. If you believe a credit card account is closed, you will need to get proof of this from the credit card company and send that on to the credit bureau in order for them to correct this mistake.

Credit Report: Contact Credit Card Company if You Find a Credit Report Error
If you find an open account on your credit report that is not yours, contact the credit card company and the credit card bureaus immediately. This can sometimes happen when someone with the same name opens a credit card account and it is accidentally attached to your credit report. Once information such as social security numbers and personal information are verified, these mistakes are usually quickly fixed by the credit card company or credit bureau.

Credit Report: Keep Copies of Correspondence With Credit Bureaus
When dealing with credit bureaus while trying to fix a credit report, it’s a good idea to keep copies of all correspondences you’ve had with the credit bureaus and the credit card companies. These can be useful if the dispute with the credit bureaus or credit card companies is not easily solved.

Credit Report and Fraudulent Activity
If you find evidence of fraudulent activity or identity theft on your credit report, it’s best to contact an attorney or law enforcement official immediately, as well as to let the reporting credit bureaus know. Fraud is not something you can settle yourself and will need to be professionally handled.

OVERVIEW
Applying for a secured credit card and paying off your monthly balance can help you to reestablish your credit rating with the major credit bureaus.

Have you been told that you have a poor credit history? Have you run into some trouble with credit card debt before, which now you have cleaned up? Perhaps you have declared bankruptcy and you are trying to reestablish your credit? Here are several key ways that to reestablish your credit by securing credit.

Secured Credit Cards
A secured credit card is one of the most straightforward and safe ways to reestablish your credit. Typically, a credit card will advance you money from the credit card company. Secured credit cards ask you to put up that money in advance. A secured credit card is similar to a debit card; you set up a bank account and deposit an amount of money associated with the card. The account draws from those funds to pay your charges on that credit card. If you put $500 into your bank account, you can only charge up to $500 on your card. You should pay off the balance every month to establish a good relationship. With secured credit cards, you are typically rewarded for good behavior. A bank will increase your credit line without asking you to deposit more money. Slowly, a credit relationship is developed. Some banks only offer secured credit cards to people who are establishing credit for the first time, rather than people who have mishandled their credit in the past.

Be smart when shopping around for a secured credit card. Be on the lookout for a secured credit card that doesn’t charge an application fee. Every secured credit card will charge an annual fee, but they can vary dramatically. Shop around for the secured credit card with the lowest fee. Credit unions often offer secured credit cards to their members at a reasonable cost.

Unsecured Credit Card
Many banks don’t offer secured credit cards, but will offer credit cards with low credits. These cards almost always have high interest rates and fees.

Questions to ask when searching for a secured credit card.

• Does the credit card company/bank report to the three major credit bureaus: Experian, Equifax, and TransUnion? This is a very important factor in reestablishing your credit. You’ll want to establish a relationship with a credit card company that will make your credit history available upon request.

• How long do I need to have a secured credit card with your company before I qualify for an unsecured credit card? Typically, the time frame is about a year. You’re looking to establish a relationship with a company, so be sure it is one that will meet your needs for the next few years.

• How much interest will my deposit earn? Look for a credit card company that will give you about as much interest as you would get from a savings account at the bank.

• How can this secured credit card boost my credit rating? A secured credit card will boost your credit rating if you use it to charge a few things every month and then pay off the entire amount. Do not carry a balance on the secured credit card.

Keep in mind that if you do have bad credit history, you don’t have to live with it forever and you can take steps to improve it.

OVERVIEW
Do you have too much credit card debt? It will take commitment and discipline, but here are some tips to get yourself out of credit card debt.

Do you have too much credit card debt? Many people are embarrassed or ashamed of how much credit card debt they have or how they got to that point in their lives. If you have too much credit card debt, admitting that is the first step toward getting yourself out. It will take commitment and discipline, but here are some tips to get yourself out of credit card debt:

• Too Much Credit Card Debt? Stop Using Your Credit Card
Stopping your credit card usage can be the toughest step of all, but it’s the most important. If you are aware you have too much credit card debt, you need to stop using the cards. Not incurring more credit card debt is the best way to digging yourself out of further problems.

• Too Much Credit Card Debt? Find Small Ways to Save
Take a good, hard look at where your money goes every day. The latte you grab on the way into work and the $10.00 sandwich are expenses that add up if you incur them every day. Take a look at your cell phone plan, your cable bill, and any other subscription services you have that could be trimmed or entirely cut out. Seemingly small savings of $50-100 can make a big difference when paying down your credit card debt.

• Too Much Credit Card Debt? Check on Interest Rates
Contact your lenders and ask about lowering the interest rate they’re charging on your credit card debt. The credit market is very competitive and many companies are willing to work with you and not lose your business. Once you’ve gotten your interest rates lowered, prioritize your payments, paying off higher interest rate credit card debt first.

• Too Much Credit Card Debt? Contact Your Creditors
If you find yourself in the position of having to miss a payment, contact your creditor and let them know about this. Try to set up a payment plan that you are sure you can meet. You don’t want to come back to them at a later date and try to renegotiate.

• Too Much Credit Card Debt? Home Equity Loans
It’s possible to tap into your home equity for a secured loan to pay off your credit card debt. You can secure a lower interest rate, fixed monthly payments, and peace of mind. Be sure to only do this if you have kicked the credit card spending habit. Many people will pay off credit card debt with home equity, only to run up their bills again.

• Too Much Credit Card Debt? Debt Consolidation
Unsecured debt consolidation is a possible solution to your credit card debt problem. Finding a non-profit debt settlement company can help you get your credit card debt consolidated into one monthly payment that you can afford.

Credit card debt has become immensely popular these days, with every nearly every other person finding themselves in debt problems. The trick is, in knowing how to deal with your credit card debt situation and taking steps to rectify your problems.

OVERVIEW
People often don’t recognize that they are in trouble with debt until it is too late. Ask yourself these questions to see whether or not you are in trouble with debt.

People often don’t recognize that they are in trouble with debt until it is too late. Ask yourself these questions to see whether or not you are in trouble with debt.

1. In trouble with debt: Do you have a clear picture of your credit card debt?
Many people feel they have a credit card debt problem, but they refuse to acknowledge it. They avoid looking at their credit card balances. They still use their credit cards, even though they know they shouldn’t. They pay off one credit card with a check from another. They transfer credit card debt balances instead of making payments. These are all signs that your credit card debt could be getting out of control.
2. In trouble with debt: Do you pay only the minimum credit card payment every month?
Paying only the monthly minimum can get you into credit card debt trouble quickly. Paying the monthly minimum will cover the interest and fees associated with your credit card, but it will not begin to decrease the credit card debt you owe.
3. In trouble with debt: Do you make late payments? Have you missed payments entirely?
Making a late payment usually means you’re waiting for the money to come in. This means you’re behind already and you will have trouble catching up. Missing payments entirely just means you’re getting further behind on your credit card debt.
4. In trouble with debt: Are you using credit cards to buy things because you don’t have the money to pay for them at that time? You can get into trouble with debt quickly with credit cards if you’re using them to buy things you cannot afford. If you can’t afford an item this month, it’s likely you’ll not be able to afford it the next month either. If you continue to buy things you cannot afford, you will get into more credit card debt trouble.
5. In trouble with debt: Does your paycheck only your bills? If your paycheck is already spent before you get it, chances are you have trouble with debt.
6. In trouble with debt: Do you choose the longest terms for a new debt? If you buy a new car, do you choose to pay over 60 months or 36? If you consistently choose the longest loan period for a major purchase so that you can afford the payments along with all your other payments, you have a problem with the amount of debt you’re carrying.
7. In trouble with debt: Have you already gone through a home equity loan to pay down your debt? If you have and you’re still running up more debt, you have debt trouble.
8. In trouble with debt: How much monthly debt do you have every month when compared to your income? If your unsecured debt (not including mortgage or rent) is more than 20% of your paycheck, you are in trouble with debt.
9. In trouble with debt: Do you have savings for a rainy day? If you don’t have a fund for an emergency and you have debts, you are in trouble with debt.
10. In trouble with debt: Do you worry about money? If you spend more time worrying about your debts than you do paying them, chances are you are in trouble with debt.