Though many young Tennessee residents strive to make sound financial decisions, they may not always have the means to do so. As a result, they could potentially consider less than favorable options to quickly gain money for expenses. Though auto title loans or pawn loans may seem useful at the time, individuals could risk losing property and facing greater financial hardship. For those facing such difficulties, bankruptcy may be an option.
It was recently reported that 5,500 individuals ranging in age from 23 to 35 were surveyed regarding their personal finances. The survey revealed that 42 percent of them had used title loans, payday loans and similar services in the last five years. Many individuals who are using these services may not have the best credit and could potentially be putting themselves in a difficult situation rather them helping themselves.
Such loans often come with high interest rates, possible loss of pawned property and other negative effects on finances. Using these services as a young individual could also prompt additional uses of such services in the future. Some may wish to consider more sound options for handling substantial debt, such as bankruptcy protection.
Bankruptcy could allow qualifying individuals to work toward more stable financial footing. Chapter 7 bankruptcy works through liquidation to pay off debts, and Chapter 13 utilizes a court-approved repayment plan. If such options interest Tennessee residents facing considerable debt, they may wish to find out more information and whether such options could be utilized for their predicaments. Additionally, discussing their situations with an experienced bankruptcy attorney could allow them to gain valuable insight in order to make decisions in their own best interests.
Source: Forbes, "5 Numbers That Spell Fresh Financial Trouble For Millennials", Maggie McGrath, Jan. 13, 2016