Harris-Courage & Grady, PLLC
5 Things Everyone Should Know About Debt
We know a lot about debt—we have helped over 10,000 Upstate New Yorkers get out of debt. We want to help you eliminate your debts too and get on the path to financial freedom.
Here are 5 things everyone should know about debt.
- Credit card companies want you to stay in debt. They make much more money when you pay interest and fees. They want you to get into debt and to stay there. If you make only their recommended minimum payments, it will take years to pay back even a relatively small balance. Credit cards can benefit you, but only if you pay them off in full each month. If you can’t be that disciplined, it’s best to avoid using a credit card.
- Bankruptcy is usually the quickest and cheapest way out of debt. Attorney’s fees for filing bankruptcy cost much less than the cost of repaying your debts in full. Filing bankruptcy can eliminate all your debts quickly—often in as little as four months! Can you pay off all your debts in full this year? If not, you should consider filing bankruptcy.
- Creating a budget is the best way to stay out of debt. Make a budget to ensure you never spend more than you earn. Budgets don’t have to stifle spontaneity. They just make sure you always have enough money for the things you need. A budget is the very most important tool to help you get and stay out of debt.
- Emergency savings will give you peace of mind. Many people think of their credit cards as a financial resource if they were ever to have an emergency. Instead, create an emergency savings account so you can take care of an emergency without going into debt. Relying on credit cards just drags out the negative impact of the emergency for months or years as you struggle to repay your debt. Build up an emergency savings account to free yourself from emergency debt.
- Excessive debt is more damaging to your credit score than bankruptcy. Some people avoid bankruptcy because they’re afraid of what it will do to their credit score. Too much debt, late payments, and open collection accounts are extremely damaging to your credit. Many of our clients actually see their credit scores improve after bankruptcy because all those negative things go away. Our office also offers a program to help you raise your credit score to qualify for regular interest rates only 2 years after filing bankruptcy.
A new perspective can help you on your way to freedom from debt. We offer a free, confidential no-obligation phone call to help you determine the best way to eliminate your debts.