The reality is that a study recently suggested that if you calculate debt interest payments into cost of living, there are 4 million new poor people just this year in the US, people who are experiencing debt poverty, and whose debt is preventing them from meeting basic needs.
if you face an inability to pay your bills, there are ways to minimize the harm to your family.
enormous investments are being made to soften the blows for banks, while nothing is done for ordinary people
The first question is “bankruptcy or default” - although for many poor people, this may not be a question at all.
If, however, you need to default, you should know the risks of defaulting on each kind of debt.
The first thing every person should seriously consider dumping are luxury items
After that, the question of what to default on first becomes more complex, and depends on your circumstances.
Unsecured credit card debt.
clipped from: sharonastyk.com