 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
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Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
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In case you were under a rock in the past several years, Congress revamped the bankruptcy laws in 2005 to make it harder to file, as well as a lot less attractive of an option. They did this in response to increasing numbers of bankruptcy filings across the nation and of course in the face of aggressive lobbying from the credit card companies. For the most people in Minnesota the way they changed the laws will affect them in a couple of ways: 1) they will have to jump through more hoops in order to actually declare bankruptcy; and 2) they may be required to file Chapter 13 instead of Chapter 7. In terms of “jumping through more hoops” consumers who are filing personal bankruptcy are now required to have a mandatory 90 minute meeting with a credit counselor to establish whether bankruptcy is in fact the best solution for their money & debt troubles. In terms of the qualifying for the preferred bankruptcy type, consumers who earn more than the median income in Minnesota can actually be forced to file Chapter 13. First they must fail the means test, which is nothing more than a set of questions and answers to see if a consumer can actually afford to pay down their part of their unsecured debt. If the court determines that you can get rid of at least a portion of the debt through a Chapter 13 payment plan, then you will not be allowed to file Chapter 7. Detailed below is the median income information for Minnesota as of 2006: 2-person families: 58,705 3-person families: 68,737 4-person families: 81,477 5-person families: 77,559 6-person families: 68,896 7-or-more-person families: 63,654 Due to these changes and the severe credit impact of bankruptcy, more consumers have begun turning to debt programs like consumer credit counseling program and debt negotiation. To learn more about these services and speak with a company who can help you, simply fill out a form and PayingPaul.Com can match you with a pre-qualified debt consolidation company. To learn about some of the other credit and debt matters pertinent to Minnesota, read these articles: Minnesota Consumer Credit Counseling Services Minnesota Bankruptcy Laws Minnesota Debt Collection Recent Bankruptcy Figures In Minnesota 2004: 16,596 2005: 24,068 2006: 7,658 2006 saw a significant reduction in the number of people filing bankruptcy in Minnesota. Largely this decrease can be attributed to changes caused by bankruptcy reform in 2005, which forces a greater number of consumers into Chapter 13 payment plan bankruptcy. In this type of bankruptcy, the debtor is forced to make payments from their monthly disposable income for up to 60 months (5 years), or until the debt is satisfied. In light of the severe credit effects associated with declaring, this is hardly a favorable option. Given this fact, more Minnesota consumers are turning to other credit card options like debt negotiation or consumer credit counseling services. |
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Credit is a useful tool and when handled responsibly allows us to obtain credit cards, loans for homes, cars and other big ticket items. The better we handle our credit, the better the terms that are offered to us from lenders including higher credit lines and lower interest rates.
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The dismal economy is having an adverse effect on people around the globe with millions facing tremendous amounts of debt. For many, escaping their debt seems like a far off dream but it doesn't have to be! By applying a few simple guidelines to your spending habits, you can begin to reduce credit card... |