When it comes to the matter of debt, it often feels like there are more questions than answers. But, to combat against this anxiety, all you really have to do is pick them off, one at a time, by researching legitimate sources to get to the bottom of any confusion that you have.
Five questions that come up about money all the time within the framework of debt include queries about consolidation, speed of repayment, bankruptcy, divorce and separation, and the matter of debt forgiveness or erasure after some particular period of time.
Should I Consolidate?
Working to consolidate debt is never going to be a bad idea, though it may or may not be practical depending on your situation. You always want to make sure that consolidation means that repayment will be simpler, and hopefully cheaper. The company that you work with will be able to set up a repayment schedule that fits within those bounds, and then it’s up to you to remain consistent so they you don’t end up getting hitting with more interest than you should have otherwise.
How Fast Should I Pay Off Debt?
Paying off debts more quickly is always going to save you money. But, the tradeoff is that you may have to adjust your standard of living for a period of time. For example, if you’re used to a certain degree of luxury, even when it comes to things like how often you get to go out and eat, or how often you get to buy new clothes – if you really chip away hard at debt, you’re going to have to forego some of those things.
How Does Bankruptcy Work?
After a certain amount of debt is weighing you down, especially if it’s associated with some sort of business venture, you may want to discuss bankruptcy with a lawyer. There’s no shame in needing to hit the reset button if you tried and failed to do something productive. It will remain on your credit history, but at least you won’t feel as bogged down while you’re getting back on your financial feet.
How Does Divorce and Separation Work Financially?
If you’ve been married for awhile, or have joint bank accounts with a partner, you may be confused about how finances are going to be split up in the event of a separation. Especially when it comes to splitting up debt, you’ll want to talk to an experienced lawyer.
How Long Before Debt Gets Erased?
Some people get so far in debt that they just stop paying bills. Often, these bills will go to collections agencies, and from there, if you can manage to avoid them, those numbers will eventually disappear. Again, this may not be the most responsible method in the world, but after a certain number of years of nonpayment. the debt will be erased.
