As most New Yorkers know, debts are neither inherently good nor inherently bad. If they pay bills on time and pay off credit cards each month, then debtors can avoid acquiring debts that are difficult to pay off. Failure to pay on time, however, not only results in higher interest rates but also leads to creditor harassment from third-party collectors who dog the debtor to pay his or her debts.
Relying on credit cards to cover most needs is not a good decision. Many Americans, including those here in Long Island, New York, have filed for bankruptcy because of credit card debts. In fact, 32 percent of those who filed for bankruptcy cited credit card debt as the reason they did so; 13 percent said it was because of home foreclosure, and 12 percent said it was due to job loss.
Even celebrities have their share of financial downturns, and when they do, they want the same thing as everybody else, a fresh start. New Yorkers who have followed Aaron Carter's career may be saddened to hear that he is one of the most recent celebrities to file for personal bankruptcy.
DMX has many fans on Long Island, New York, among other places, and it might have been a shock for his fans to learn that the rapper is in the middle of insolvency. However, at the moment, that is not the rapper's only problem. An official from the Justice Department is challenging his bankruptcy claim after seeing delays and inconsistencies.
Many people on Long Island, New York believe in the old adage that says health is wealth. However, rising medical costs can be a serious issue that can land a person in a pile of debt. In a report by the National Patient Advocate Foundation in the United States nearly two-thirds of bankruptcy filings are a result of medical debt.
Many Americans, including those from Long Island, New York, have been struggling with their personal finances since the Great Recession. The Great Recession began in 2009 and many people are still dealing with financial challenges due to unemployment, debts and the high prices of commodities.
Most advice about personal finance problems is simple and easy to understand, but following the advice is often much easier said than done. Acquiring debt can take place either quickly or gradually over time, and the accumulated amount can wreck a person's financial future. Very often, people commit the same, common mistakes, and here are three that must be avoided.
New Yorkers know how credit cards benefit their lives. A single swipe of the plastic allows cardholders to buy what they want, whenever they want. While credit cards are a convenient way to buy goods and services instead of having to use cash, people often make mistakes when using their credit cards, which can result in a great deal of debt. For Long Islanders who end up saddled with overwhelming debt, credit cards are dangerous things that may bring long-term consequences, such as creditor harassment and financial challenges.
Since the Great Recession began, most Americans, including those from Long Island, New York, have tightened their belts. The increasing cost of household expenses and unemployment has subjected most people to financial challenges and many are eventually forced to declare personal bankruptcy. However, recent reports confirm that the economy started to improve during the first quarter of 2013.