Author Box
Articles Categories
All Categories
Articles Resources

Becoming Debt-Free - The Ultimate Goal

March 21, 2012 | Comments: 0 | Views: 128

Recently, there has been a resurgence of people looking for ways to become debt-free. I believe a lot of this is due to the publicity of the debt the US government continues to grow. Many Americans, have started taking a closer look at their own finances and realizing that they might have out of control debt problems. There are many websites like the one of Dave Ramsey and it touts the goal of becoming debt-free as the ultimate financial goal. Most of these programs are pushing the idea of becoming debt-free without filing bankruptcy. The problem is, many American's debt has gotten so high that many have no other choice but to file for bankruptcy.

At the end of 2011, it was reported that the average American has close to $16,000 in credit card debt. When adding the interest rate into the mix, it's looking highly unlikely that these average Americans will ever be able to get out of debt without the help of filing bankruptcy. The problem lies in the debt ratios and not really in the total amount of debt. If someone made $150,000 a year and had $16,000 in credit card debt, it's pretty obvious they could budget themselves and take a little bit of pain to pay it off in a short amount of time. When someone is making $35,000 a year it becomes next to impossible because of their living expenses. Consequently, most of these people make the minimum payment just to keep their credit card accounts open. They don't even realize it but they're becoming enslaved to their debt.

It is possible to become debt-free without filing bankruptcy, but it takes discipline and capital. If someone doesn't make enough money and have gotten themselves into some serious debt, outside of winning the lottery, the only thing that will get them out of debt is a bankruptcy filing. All the debt-free gurus tell their clients to avoid filing bankruptcy at all costs. Most of them will even admit that for extreme circumstances, extreme action is required and that's where the individual should consult a bankruptcy attorney. I guess it really depends on who one goes to for their advice. A financial consultant will push budgeting, while a bankruptcy attorney will suggest a bankruptcy filing to eliminate the debt. It's common for folks that are in trouble to consult a bankruptcy attorney hoping for an easy way out, only to find out that the attorney advises them that their debt problems are more of a budgeting issue and it's possible to get out of debt without filing bankruptcy.

When considering how to go about becoming debt-free, one should gather up their monthly bills and figure out without charging any more on their accounts, how long would it take to pay off all their bills. As a rule of thumb, if it takes longer than five years it might be time to consult a bankruptcy attorney.

The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Debt Free


Filing Bankruptcy


Bankruptcy Attorney


Debt Problems


Become Debt Free


Bankruptcy Filing

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

There are many differences between filing for bankruptcy protection under Chapter 13 than under Chapter 11. A Chapter 13 reorganization is a much more streamlined process. Creditors do not vote on

By: Ryan C Woodl Finance > Bankruptcy Tips Advicel April 26, 2012 lViews: 202

One of the main reasons for the high divorce rate is financial difficulties. While most couples have disagreements about money, for many the problems and the blame for them can get out of hand,

By: Kristie Brownl Finance > Bankruptcy Tips Advicel April 26, 2012 lViews: 200

The question of whether a creditor is a considered an "insider" in a bankruptcy case is an important distinction. When you repay one creditor and not others, it is considered a "preference" because

By: Kitty Linl Finance > Bankruptcy Tips Advicel April 24, 2012 lViews: 157

Ever since the release of the phenomenon called the Internet, it seems that before people go to see a professional, they will take the time to look it up online. Don't get me wrong, the Internet can

By: Bob P Jonesl Finance > Bankruptcy Tips Advicel April 12, 2012 lViews: 171

Over the years, the bankruptcy code has taken on a new complexity that makes it almost imperative that an individual has the help of a bankruptcy attorney to file. It is true, that it is one's legal

By: Bob P Jonesl Finance > Bankruptcy Tips Advicel April 12, 2012 lViews: 143

There always seems to be anincrease in crime when the economy is not doing well. Whether it is increase of violent crimes like muggings and burglaries or white-collar crimes like embezzlement and

By: Kitty Linl Finance > Bankruptcy Tips Advicel April 10, 2012 lViews: 178

On the outside, these two topics seem to be completely opposite. In reality, they actually have a lot in common. When someone graduates from college, they're getting a fresh start on life and heading

By: Bob P Jonesl Finance > Bankruptcyl June 11, 2012 lViews: 163

Lately, the topic of filing bankruptcy has become commonplace in social circles. Everyone, rich or poor, probably has someone in their neighborhood that is filing bankruptcy and facing foreclosure.

By: Bob P Jonesl Finance > Bankruptcy Personall May 29, 2012 lViews: 172

Recently, the student loan crisis has made its way to the front and center of the media. Currently, the student loan debt in the United States has surpassed an incredible $1 trillion and with no end

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 163

Ever since the economy turned south back in 2008, many Americans are facing severe financial woes. Many of these usually hard-working folks are now unemployed or have had to settle for a lower form

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 173

When an individual is filing bankruptcy the most important thing to keep in mind is to be completely honest with their bankruptcy attorney from the very beginning. The bankruptcy attorney is a

By: Bob P Jonesl Finance > Bankruptcy Personall May 09, 2012 lViews: 156

There are a few choices for individuals who are in a financial crisis to reduce or eliminate their debt. There is debt consolidation which requires the individual to take out a loan to cover all of

By: Bob P Jonesl Finance > Bankruptcy Personall April 20, 2012 lViews: 143

Discuss this Article

comments powered by Disqus