Tag Archives: debts
Means to Free Yourself from Debt
Some debts are fun when you are acquiring them, but none are fun when you set about retiring them. Ogden Nash
True to this adage of Ogden Nash, we feel great delighted the moment we obtain cash from a loan. The reason is that we all are able to hold on to ample sums of money to shell out for our needs, and sometimes even for our wants and simple desires in life. But paying off the money we owed is another story. We always find it difficult to set aside huge portions of our monthly earning for the repayment of our debts.
Because of these things, we suddenly find ourselves missing out on our loan and credit repayment. We may also incur late fees that can add up to the burden of repayment. Because of these two reasons, we end up receiving poor credit scores. But, it is by no means too late to repair bad credit histories and retire all our financial obligations. The particular remedies outlined below are a few of the effective means with which we could free ourselves from all forms of debt and credit.
Bad Credit Consolidation Loan
The most famous form of loan intended for people with bad credit history are bad credit debt consolidation loans. These types of loans consolidate or sum up all debts accumulated by a person as a result of unforeseen circumstances, domestic problems and even repayment delinquencies.
Once the total value of the money owed has been computed, together with the interest to be charged on the loan, the final amount will be subdivided into monthly installments that could stretch from one or more years. There are two primary kinds of bad credit consolidation loans: secured and unsecured loans. How do these two types of loan differ from one another? Let us see.
Two Types of Bad Credit Consolidation Loans
Secured debt consolidation loans are loans that have lower interest rates, lower yearly charges, and higher amounts available for loan than their unsecured loan counterparts. The majority of secured loans provide a maximum amount of $150,000 payable in 25 years. The only catch with this kind of loan is that it requires a certain property for collateral, to make certain the repayment of the loan.
On the other hand, though unsecured bad credit consolidation loans have slightly higher interest rates and annual charges, and lower amounts available for loan, as compared to most secured loans. The money loaned needs to be repaid for a maximum period of 10 years. Still, this kind of loan does not require any form of collateral from debtors. Debtors will just be required to process the documents to apply for the loan and after a few weeks 60 days, the applicant will soon receive the amount he or she applied for.
Yes, people have the option of selecting from these two kinds of debt consolidation loans that will help them settle their debts and soon repair their bad credit history. So choose any of these means and eventually you will be able to settle all your debts towards a credit-free life!
Can Medical Bills Cause Bankruptcy?
Most bankruptcies occur for reasons beyond our control. As medical bills continue to soar to extraordinary heights, those who cant afford adequate health insurance have no choice but allocate their savings to vital treatments and procedures. Once these individuals run out of cash, they must resort to bankruptcy. Heres a brief look at the correlation between bankruptcy and medical expenses in the U.S.
Rising Medical Costs
In recent years, medical costs have become more daunting than ever for struggling families and individuals. According to a study by health care consulting firm Milliman Inc., healthcare costs for the average family of four exceed $20,000. Those forced to file for bankruptcy often pay much more than thatespecially considering that an average night in a hospital costs nearly $2,000.
Health-Related Filings
According to the American Journal of Medicine, just over 62% of all bankruptcies in 2007 were filed because of insurmountable medical debtsup from 46% in 2001. After exhausting their savings, many people sell their cars, jewelry, and homes. After months of trying to keep up with medical debts, these individuals have no choice but to resort to bankruptcy.
How Bankruptcy Helps
Bankruptcy is a perfectly legal and honest way to eliminate insurmountable debtsespecially if those debts are of a chiefly medical nature. Chapter 7 bankruptcy can immediately eliminate most debts, including outstanding medical bills, but involves the seizure and sale of personal property. Chapter 13 bankruptcy can also eliminate outstanding debts, but only if the debtor adheres to a three to five-year repayment plan. Before selecting a bankruptcy option, its always a good idea to speak with an experienced bankruptcy attorney.
Millions of Americans are just one illness away from financial ruin, despite being in general good health and obtaining the best health insurance possible. In case of medical emergencies, however, the law permits bankruptcy as a strong safety net. If your medical bills are becoming insurmountable, consider bankruptcy as a solution to your financial problems. You can contact Gary Brenner Law Offices for any further questions.