Are you having problems making ends meet? Are you behind on loan or mortgage payments? Have you tried to get back on track but you can’t figure out why things aren’t changing? These may be a sign that bad debt is hanging over your head, but our New Jersey bankruptcy attorneys have seen these debts first hand. Here are a few ways you can fight these bad debts off…
Ways We Fall Victim to Bad Debts
- Overspending—If you make $1,500 a month, but spend $200 on cable, internet, and cell phone bills, you’re probably overspending. These are mostly entertainment, and when it comes to debt, no entertainment is worth digging yourself deeper into the hole.
- Waiting– If you are just five or six months behind on your mortgage, then you still have options. Bankruptcy lawyers can help you negotiate a loan modification to get you back on track. But every month you wait to get things done, the less likely you’ll have an alternative available. Act quickly.
- Co-signing– Your child or grandchild needs help to buy a house, or a car, or to go to school, and you decide to help them by co-signing on a loan. This isn’t the best idea if you are heading toward retirement. You risk your own credit history and retirement by not letting your loved ones borrow on their own credit records. It may be time to let these birds fly from the nest.
- Borrowing from Your 401k– In case you didn’t know, the funds you save in tax-deferred accounts are generally safe from your creditors and bankruptcy. That is, until you cash them out or borrow from them.
There are plenty of other ways to keep bad debt from rolling over you. Keep checking back on our blog or head over to our Facebook and Twitter to learn more tips. You might be surprised what you learn.