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Owing money means you have debt. Most people have “acceptable “debt such as a home mortgage and or car loan. It’s a part of life for most Americans, its simply how we live and how we build credit. For many, however, managing debt is challenging. Losing financial control can happen fast and can be unexpected. Loss of job, health issues or divorce can trigger a downfall. But what about factors that we don’t realize within the financial structure of debt itself? There are a few things to keep in mind about debt “sneaking” up on you even when you are in financial control…for the time being.

If you are experiencing financial trouble and having a hard time managing and paying your debt, personal bankruptcy might be an option and Hines Law serving the greater Boston area can help.

Mortgages are a big culprit to sneaky debt, especially if you have a fluctuating interest rate. Because most people don’t consider a home mortgage as bad debt, they don’t realize the ramifications of the loan terms. Making payments on a 30-year plan means losings tens and thousands of dollars in interest fees. If the loan rate isn’t fixed, then you may find yourself struggling to make payments when the rates go up, compromising your financial security.

Car loans are another cause for sneaky debt. Most consumers don’t realize that when they buy a new car, it loses value as soon as it leaves the lot, so in a few years your car isn’t worth what you paid for it or still owe on the loan. Interest rates on car loans are high, so the fancier the car, the higher the payment, which most people don’t seem to care about as long as they can make the payments. A financial burden to those already struggling to pay bills. It is much wiser to buy a car that is used, it will save you thousands of dollars in payments.

Let’s not forget about interest-free loans. If you don’t pay off your interest-free balance within a certain time frame, you’ll end up spending way more in back interest once the offer expires. Paying interest is a waste of money, and retailers count on this!

One of the sneakiest ways to increase your debt without realizing it, is having credits cards that offer rewards. Banks are making a lot more in interest than they are giving back to you in rewards. Frustrating to say the least. The goal is to not pay interest, so if you can pay cash then do so.

Personal Debt is undesirable and can come in all shapes and sizes. If you are in debt and are losing control of your finances Hines Law can help. Our Bankruptcy Firm specializes in Chapter 7 and Chapter 13 personal bankruptcy and have extensive knowledge and experience in debt relief.

Our Bankruptcy Lawyers locally here in Massachusetts understand the bankruptcy laws and can help guide you through the process, so that you avoid problems and benefit the full protection you deserve. Call us today for a Free Consult!