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Mounting debt can occur when luxury is mistaken for necessity

On Behalf of | Jul 3, 2013 | Chapter 7, Firm News

In today’s society, many conveniences that are truly luxuries are being mistaken as necessities. Because people are under the impression that they need many of the purchases they could do without, overspending occurs quite often. Personal income may not be sufficient enough to cover payments on items in full, so consumers often turn to credit cards so they will have the ability to pay for purchases over time. Unfortunately, many people, including Tennessee residents, use this technique irresponsibly and mounting debt ensues.

Because many people become complacent about the luxuries in their lives, they begin to think of them as necessities. The idea of buying a used car instead of a brand new one or going without cable television can seem like a ridiculous notion to those who do not realize that their spending has gotten out of hand. It occasionally can take a stressful situation, such as losing a wallet, to understand that using credit cards and taking on debt for the sake of keeping up a lifestyle can be very detrimental in the long run.

Lifestyle changes can definitely help to lower the amount of debt being accrued each month. Getting rid of monthly bills such as those for cable plans and multiple car payments can help reduce debt for some. Nevertheless, many people have accumulated such significant debt that cutting back and following a budget each month may not be enough to reduce their debt to a manageable level.

Fortunately for those suffering the burden of mounting debt, there are avenues available for them to explore in order to manage their debt and have a financial fresh start. Bankruptcy was created to help those with considerable debt get their payments under control through various methods. By looking into Tennessee bankruptcy laws, debtors may find solutions suitable for their situations that will allow them to handle their financial circumstances.

Source: Deseret News, “As times get better can you keep a leash on your credit card?” Whitney Evans, June 18, 2013