According to some analysts, the time may be approaching when the financial bubble will burst. In other words, the financial stability many are feeling may disappear. Some may already be experiencing it locally as major retailers close their doors. If a nationwide event occurs, it may result in widespread job losses, stock market crashes and a slowdown in the housing market. Many in Florida who already struggle to pay their debts may be looking for debt relief when their own efforts at reducing their debt fall short.
Some financial advisors warn people not to make common mistakes in paying down their debt. For example, borrowers may continue to make purchases with their credit cards even as they try to pay down the balances. This may be because of the points or rewards a particular card may offer, but the interest a consumer pays on a credit card balance often negates any incentives a purchase may earn. Consumers may also obtain a new credit card with an introductory low rate to pay off an old card, but they sabotage their debt payment plans by continuing to use both cards.
Additionally, advisors say it is a mistake to attempt to pay off debts without a systematic plan that takes the big picture into consideration. Analysts suggest consumers establish an emergency fund, then create a payment plan focusing on the debts that have the most negative impact on their budgets. Of course, there is every likelihood that looking at the big picture is too alarming, and that establishing any kind of fund is out of the question.
It is possible that financial analysts are right to warn people about the potential for hard times ahead. However, for those in Florida who struggle with mortgage payments, credit card debt, threats of repossession or wage garnishment, those hard times may already exist. Seeking advice and assistance from a debt relief attorney may be the first step to a brighter future.
Source: Forbes, “The Top 5 Mistakes People Make When Paying Off Debt“, Kelley Long Log, Oct. 1, 2017