The holiday season means trying to get gifts for your loved ones. This can become an expensive endeavor. Some people rely heavily on credit cards to make this possible. Once the holidays are over and those credit card statements start coming in, it might become obvious that the debt is more than they expected.
If you’re facing considerable debt after the holiday season, your priority must be determining how to handle it.
1. Write it all down
Write down all the debts you have. Make a note of the due date for each one, and write down the interest rate for the account. This might help you to ensure that you can focus on balances that are either higher or ones that have the worst interest rates.
2. Set your budget
Plan a budget to determine if you can make the payments necessary for the debts. Be realistic about what you can afford. There’s a chance that you might not be able to pay for everything. This could signal the need to consolidate some debts, but that’s not always possible.
3. Consider bankruptcy
Bankruptcy is an option that enables you to either liquidate assets or make monthly payments to get your debts taken care of. Chapter 7 is known as liquidation bankruptcy. Chapter 13 is known as a working man’s bankruptcy. Both of these make it possible for you to have a fresh financial start.
Ultimately, you may determine that bankruptcy is your best option. Ensure you understand your responsibilities for taking this step. Getting your case filed quickly is beneficial because you’ll enjoy financial freedom much faster. Working with someone who’s familiar with these matters is important because they can guide you through the process.