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How to tell if it might be time to seek debt relief

On Behalf of | Jul 27, 2022 | Bankruptcy Law

Financial challenges can take on various forms and dealing with similar issues can be a daunting task. Regardless of how it happens, issues with debt could lead to numerous hardships in life and may affect one’s ability to build a safety net or pursue life-long goals. While most individuals in Maryland might be aware of the trials debt can bring, some might not know how to tell if it might be time to seek relief from the burdens of debt through outlets such as bankruptcy. 

According to studies, there are numerous types of issues that might act as warning signs of growing debt concerns and some examples of possible red flags might include: 

  • Late payments:  Constantly being behind or late on payments is a common sign of financial strain, and such issues may only lead to extensive late fees or cause interest rates to soar. 
  • Lack of savings:  Those who struggle with debt may also find it difficult to save for emergencies and seeking relief from debt may be vital to protecting one’s future. 
  • Credit for purchases:  Another red flag could involve a scenario in which one feels forced to use credit accounts to purchase everyday necessities, as debt may only breed more debt. 
  • Credit score:  Issues with debt can also impact one’s credit score and disrupt a person’s ability to pursue life-long goals such as owning a home or saving for retirement. 

Those who are only able to make the minimum payment due each month might only continue to see their account balances rise and the severity of their situations may only continue to grow. 

While outlets such as bankruptcy may provide a path with which to seek relief from debt, knowing how to choose a path forward can also be an intimidating concept. Individuals in Maryland who face similar issues and wish to better understand all their available options could benefit from consulting with an attorney for guidance on the next steps to take. An attorney can examine a client’s situation, provide insight into making informed choices about the available options, and help choose a path for debt relief that best aligns with his or her needs.