If you are struggling to make ends meet, you probably believe there is no such thing as “good debt.” However, it is important to understand that not all debt is the same and how you manage your finances now can help prevent future monetary problems. For an individual who has just obtained a “fresh start” after emerging from bankruptcy, it is vital that you avoid your previous monetary mistakes and implement new strategies for managing your debt.
“Good debt” is debt that you incur in order to obtain a long-term goal. The most common example is a mortgage loan. Most mortgage loans are for a term of 15 to 30 years and are an individual’s most significant debt. However, this long-term financial commitment helps build your credit and allows you to build equity in an asset that will hopefully continue to increase in value.
“Bad debt” includes purchases or expenditures for things that you do not use or that are not necessary. This can include a wide variety of things such as a gym membership that you never use or shopping sprees for frivolous items. Allowing your credit card bills to snowball, especially once interest and late fees are added to your balance, for unnecessary expenditures can get you into financial trouble quickly.
If you are working to improve your finances, it is essential to evaluate your debt. Make the necessary changes before you become overextended. However, if you have experienced a negative event such as the loss of a job or divorce that has left your finances in shambles, it may be time to consider filing a bankruptcy case and obtain a second chance. Whatever your circumstances, we can help you understand all of your available debt relief options. Call us today to schedule an appointment.
The “defender of the little guy,” DeLadurantey Law Office, LLC. handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.