In tough economic times, many people find themselves in debt. In Memphis, people continue to pay their bills late and may max out their credit cards as a result of financial difficulties. Some, however, turn to bankruptcy or other options for debt relief.
Despite the trends in Memphis, across the country, analysts are seeing a rise in credit scores. The average national credit score has risen by one point this year for the second year in a row, increasing the national average to 750 out of a 990 maximum score. Many see this outcome as the result of more budgeting and financial planning on the part of citizens.
While this is good news for the nation as a whole, many people in Memphis still face overwhelming debt. Some turn to bankruptcy as a way to liquidate debt. While bankruptcy can provide a solution in many cases, it may not always be the best option. Many people may look to other forms of debt relief for management of their monthly payments, bills and other financial obligations.
Those in debt should evaluate their finances. Often, it is helpful to develop a budget. Financial planning also helps some people achieve a way out of debt. While some turn to debt consolidation, this is usually not as beneficial as it may seem. While debt consolidation can offer immediate relief from some debt, it typically only switches the debt from one creditor to another.
There are many options for debt relief and debt management. It is important that people in Memphis and across the country who are facing financial challenges consider all of the available alternatives when it comes to seeking debt relief.
Source: Reuters, "Credit score increases show upturn in hard-hit cities," Mitch Lipka, Sept. 17, 2012