Atlanta Bankruptcy Attorneys See More Homeowners Default on House Than On Credit Card
What if you had two choices: Pay the mortgage each month, or pay your credit card bill?
In the past, choosing was a no-brainer - put the money towards the roof over your head. But increasingly, Americans are starting to prioritize credit cards, meaning the mortgage gets left by the wayside, according to Atlanta bankruptcy attorneys.
So what's changed? To start, the housing market. With one in every four homeowners underwater on their mortgage - and thus having no equity in their home - paying off a home loan can feel like throwing money away. On the other hand, paying the credit card bill allows us to keep using plastic to cover food, gas and clothes even when we aren't bringing home enough bacon to afford them.
But even though our new priorities make sense under the circumstances, it doesn't mean they're the best - or only - choice.
There's a tendency to feel in denial about foreclosure. While you can't get away with defaulting on your credit for very long, you might go a few mortgage-free months before hearing anything from your bank. But that doesn't mean you've escaped - you're only putting off the inevitable. And remember, once you lose your house, you also lose all that money you've paid into it over the years - and the opportunity for it to regain its value, which chances are it will eventually.
What's the best solution? Well, ideally, you'd reduce your reliance on your credit card. With smaller monthly bills, you'll have more of your paycheck to allocate towards your home loan. Of course, you'll still have debt that you'll need to pay off, so you'll eventually need to adjust your budget enough to start chipping away at that debt burden.
It's possible to juggle both a mortgage and a credit card, but sometimes you're stuck between a rock and a hard place. You have to choose one or the other, and both choices have consequences. If you can't afford going without credit - and it's jeopardizing your home - Chapter 13 or Chapter 7 bankruptcy can help.
Different bankruptcy plans have the potential to lower your debts and stop the foreclosure of your home. A professional Atlanta bankruptcy attorney can identify a plan that's right for you. Learn more about bankruptcy for free when you sign up for a one-on-one personal debt analysis. It's hard to have the best of both worlds, but we can help you make the most of what you've got.