Do You Have to Hide Your Debt?

Being in debt can cause so many negative issues in a person’s life. Apart from increasing stress, it can even lead to depression if no immediate solutions are found. Most often, the level of emotional trauma depends on how a person can handle stress.

In the USA, new research has found that at least one in three consumers is hiding financial woes from their loved ones. Currently, the country’s so-called hidden doubt is already at 55 billion dollars.

The latest report also revealed that an average personal debt is pegged at 9,731 $ and this does not even include the mortgages. However as people face this debt, they admit to their spouse and other family members that they owe only half of the amount.

There were other important details revealed. According to the research that covered some 2,258 consumers in the USA, one in five consumers does not tell their partners about their financial problems. On the other hand, 78 percent of those who have debt never admit to their partners how much they owe. While 22 percent were able to be honest about their debt, majority were actually caught out. Some tried hard to deny their problems but those who did this actually admitted their act only added to their financial woes.

Now as to those facing debt, it’s the women who were found to be lying more about where they spend their money. Mostly, they’re not honest about their spending on clothes while the men lie about spending on alcohol.

Obviously, suffering from debt and lying about it is a stressful experience for anybody. Among those surveyed, many complained about suffering from different forms of anxiety. These include lack of sleep, mood swings, drinking more alcohol and poorer performance at work.

Psychologists point out that although people’s decision to hide their debts from their loved ones is their way of showing their independence and self control, this isn’t the right way to solve their problems. They just don’t want their family members to worry so much and they’re showing that they can take care of everything. But not admitting one’s real issues in life can affect the person’s physical and mental health. Additionally, the problem will also have a negative effect on your loved one’s health especially once they get to know of the real problem.

So the best way to deal with your debt is to be honest to yourself and to your family. If you don’t want to be affected, then find immediate solutions. It’s never right to escape from your debts. Settle it as early as you can to avoid accumulating more debt moving forward.

A good option is to obtain short term unsecured loans such as the payday and cash advance types. This is the more affordable alternative and it’s fast and easy to obtain as well. Since most lenders now do business on the internet, it’s very convenient for borrowers. Those with bad credit need not fear about presenting a collateral or worry about a credit check because these are not usually required.…

More Adults in the USA Face Debt Due COVID-19

One of the challenges that adults must face in life is how to properly handle their money. This is especially true if they start working on their own and as they start a family or even a business.

More Adults in the USA Face Debt Due COVID-19Budget management is, however, a task that not all people or specifically not all adults are skilled at. And so while some are able to manage their money well, some unfortunately have difficulty in this aspect. This can be traced to how a person was raised by his or her parents. Those who were taught the value of saving when they were small and were exposed to how their parents handled the family finances grow up to have a better idea of money management. On the other hand, those who were spoiled as kids such that they often got the things they wanted may have a hard time handling their funds when they grow up to become adults.

In the USA, latest reports say that the number of adults experiencing extreme debt has risen. In fact, the figure has doubled in two years. A main factor was the global recession last year that resulted in pay cuts and lesser working hours for many people. Considered to be extreme debt is if the ratio of a person’s debt to his income is more than 66:1. According to the Consumer Credit Counseling Service, there were more than 8,000 men and women who were facing this debt ratio in 2020 due COVID-19.

In addition to this, people who filed for insolvency last year also reached its high point. These included those who declared bankruptcies, had debt relief orders (DROs) and those who were into debt plans known as individual voluntary arrangements (IVAs).

Fortunately, there’s help available for people who are experiencing extreme debt. The Ministry of Justice earlier announced a government program that will assist people in debt to pay only a very minimal amount of one $ for a period of six months. After this period, they can then start repaying their debts in full to help them improve their financial situation.

This program should not, however, be seen by those in debt as just a temporary means to settle their financial troubles. They should learn from what they’ve been through and as much as possible, should commit to not go into debt again in the future for the sake of their children and their family as a whole. Sometimes there are people who continue with their old habits after they’ve surpassed one trial in their lives. The others are just too stubborn that they keep repeating the same mistakes over and over again.

Take for instance the use of credit cards. The credit card has been confirmed as a major cause of debt for many people but some adults just ignore this until they accumulate a high balance and can no longer afford to pay.

A good alternative to this issue is obtaining an affordable short term loan instead such as the payday and cash advance. This does not entail a variety of charges and can be paid back according to the schedule most suited to the borrower’s financial situation. What counts as always is to be conscious of one’s financial obligations and pay what you owe on time.…

Is Declaring Bankruptcy a Way Out of Debt?

BankruptcyNumerous people, probably in the millions, are facing different kinds of debts at the moment. This may be caused by various factors but mostly due to the use of credit such as in the form of credit card and loans. So many people have somehow gone overboard in their use of the plastic and in taking out loans that led them to suffer from debt.

Financial troubles can indeed cause headaches, stress and anxiety to people generally affecting not only their mental health but even their physical health. Sometimes the negative effects on a person’s overall health can lead them to decide to just declare bankruptcy as a way to get out of their problem. But is this action really the fastest solution available to people facing huge debt?

Debt advisers in the USA don’t think so. To them, declaring bankruptcy should be considered as the last option. This is because making the move would mean letting go of all your personal possessions, income and properties including your beloved home. In addition to that, it will also have a big impact on your credit history.

In the USA, bankruptcy rules state that is a person has gone bankrupt and eventually earns money, it could still be taken away from him or her in order to pay past debts. Winning a huge sum of money such as from a lottery does not mean the debtor can keep even a certain amount from the winnings. This applies to people facing huge debts but not to those who owe only a small amount.

In terms of your credit rating, declaring bankruptcy can mean you being blacklisted for up to 15 years. What happens then is that you can no longer apply for new credit within that period. Again, this applies to those who owe a huge sum of money from banks and lenders. Those facing debts that are small and continue to earn a regular monthly income, there is a possibility that the court will agree to set up an administration order requiring debtors to pay their creditors on a monthly basis.

So just in case you want to declare bankruptcy, what then are your options after that? Do you have limitations when it comes to employment and obtaining new credit?

For those bankrupt people, a major requirement is to declare their financial status whenever they apply for new credit notably when the amount involved is more than $300. You have to do this even if you are applying together with a friend or another person for that matter. If you’re planning to put up a new business using another name, this should also be done. In other words, you have to inform those you partner with about your previous issue.

So the big lesson to learn here is to always repay your debts on time. Never wait for the due date or delay payment if you have the necessary funds. Loans including the short term unsecured ones such as the cash advance and payday no matter how small the amount involved should also be paid on a timely manner.…