Both student loan debt and credit card debt are huge problems for many people in North Carolina. While all kinds of debt are stressful, it appears that these two types of debt are particularly worrisome to those to have them. According to the Christian Science Monitor, a recent survey indicated that of 25 percent of people who have credit card debt also have student loan debt. In addition, of those people who have student loan debt, 65 percent are stressed about their finances.
One common belief about filing for bankruptcy is that your credit score will tumble and never recover. It is easy to see how you could think that, given that if you are considering filing for bankruptcy in North Carolina, your credit score is likely already low to begin with. At Wootton & Wootton, P.C., we understand how important your credit score is to you. While bankruptcy may temporarily bring down your score, many people find that the damage is not permanent.
The Great Recession has apparently affected the millennial generation in a way that has made them wary of taking of on debt. This is particularly true when it comes to credit card debt. According to a recent survey of young adults, only one third of respondents indicated that they had a credit card reports Fox Business.
You may have heard the phrase “zombie debt” used but are unsure of what it means or what it refers to. Often times, debts are sold by the original lender to a debt collection company for a fraction of what they are worth. That company, or any company it subsequently sells your debt to, then comes after you for the amount even though you though were unaware of the debt or the statute of limitations for collecting the debt has passed. Thus, these debts are given the moniker zombie debts since it is as if they have risen from beyond the grave to haunt you.
Having a lot of debt can be overwhelming, and if you are considering a North Carolina bankruptcy, the process may seem intimidating. At Wootton & Wootton, P.C., we know that you want things to go as smoothly as possible. Therefore, understanding the different types of debt can be helpful in coming to terms with your finances and moving forward with the bankruptcy process.