When considering large amounts of debt and how to best deal with mounting bills, it is easy to feel overwhelmed and out of control. Occasionally, a short-term solution can be the best way to proceed when dealing with money woes. Other times, personal bankruptcy is the best answer. It doesn't matter if a person is from California or another state, sometimes they just need help -- provided it's from the right source.
According to financial experts, one of the most commonly made mistakes is taking out payday or short-term loans to bring in a quick infusion of cash. The money comes with a very high price tag, however. The exorbitant interest rates they feature can turn a small loan into a larger money problem in a very short time frame.
Debt consolidation companies can, on the surface, look like a good way to get out from under excessive financial obligations. They too can turn a bad situation worse, experts say. Often, they are scams that do more to harm than help.
So what is the answer? Unfortunately, there is not a one-size-fits-all resolution to money issues. There are too many variables within each individual case for a generic solution to be possible. Personal bankruptcy, whether it be Chapter 7 or Chapter 13, may be the best solution for someone from California or elsewhere who's struggling to keep their head above water financially. Understanding the difference between the types of bankruptcy and how each can best be utilized is fundamental to a successful resolution and, hopefully, financial peace.
Source: KOLO-TV, Declaring Bankruptcy: Is it Right for You?, Rebecca Kitchen, Feb. 10, 2014