Debt relief: Even good debts may lead to dire financial hardships

With an economy that is thriving, many families in Tennessee and elsewhere may feel less apprehensive about taking on new debts. However, there may be some confusion about which types of debt are considered positive and which types may provide little monetary return. With high interest rates that can cause account balances to constantly rise, credit cards are one example of financial obligations that could leave a person in search of debt relief.

Debts that are considered good consist of any financial obligation that may provide a person with some form of return, such as a home or student loan. With home loans, there is the potential that a property may increase in value, and student loans may increase a person’s ability to earn income substantially. However, results from a recent survey suggested that nearly 20 percent of Americans considered mortgages as bad debts, and nearly double that amount felt the same about student loans.

In the same survey, almost 30 percent of individuals admitted to believing the opposite of credit card debts. Unfortunately, with high interest rates on many credit accounts, these are typically considered bad debts. With many individuals who use credit cards to cover purchases they may otherwise be unable to afford, similar forms of debt may provide little in the way of financial return and might instead only lead to significant monetary difficulties.

In some cases, even a good debt can leave a person facing dire financial hardships. Those who experience similar concerns may wish to know more about the available options to pursue debt relief, and they could benefit from speaking to an attorney for advice. An attorney can work with a client in Tennessee in forming a strategy to reduce or eliminate debts and regain control over his or her financial future.