Nashville Bankruptcy Law Blog

Many debtors in Tennessee who are struggling to pay their bills cut their credit cards to avoid overspending. While this may seem like a smart way to avoid new debts, credit cards can be an asset for those trying to rebuild credit.

The key to not getting in trouble with credit card debt is to pay it off every month. If credit cards are not used for a long time, card issuers may close the accounts. This can hurt a person's credit score, especially if the account was one of the cardholder's oldest accounts. If a debtor must close credit card accounts, closing accounts that are newer may have the least damaging impact on the debtor's credit score.

It may be possible for Tennessee consumers to settle credit card debt for less than what they owe. However, it is important to consider the potential consequences of doing so. For example, a debt settlement may only be available to those who can show evidence of a financial hardship. Individuals who are planning on settling their debt should also understand that they can do so on their own without going through a third party.

However, regardless of how the debt is settled, it will likely be reported to the credit agencies. If this occurs, the settlement will appear on a person's credit report for up to seven years, which may result in a lower credit score. Anyone who chooses to work with a debt settlement company should know that doing so won't necessarily put a stop to creditor collection calls. It also doesn't guarantee that a credit card company will reduce a debt balance.

Every professional musician knows it's difficult to succeed in the business. Instrumentalists, singers, songwriters, producers and engineers must keep their skills up and compete for good-paying work.

Artists aside, there have been plenty of recent financial struggles within the music industry. It is important to understand that debt problems can and do affect everyone -- from freelance players to huge corporations -- and that various forms of bankruptcy protection can be indispensable to those who qualify for it.

Financial troubles strike people in Tennessee at all stages of life. Seniors represent a growing group of debtors overwhelmed by too many bills and insufficient retirement savings or benefits. Rising health care costs increase the pressure on older people as well. A report from the Employee Benefit Research Institute indicates that households headed by someone 75 or older have an average debt of $36,757 as of 2016 compared to $30,288 in 2010. Some debtors might salvage their positions by analyzing their budgets, adjusting their lifestyles and reaching out to creditors.

In the early stages of financial stress, people might tackle their problems by scrutinizing their budgets. Savings might accrue by cutting out restaurant dates and credit card purchases. Other lifestyle adjustments could include selling a home as long as it has equity and moving to a place with a lower cost of living. For some people, getting a part-time job or renting out a room could increase income and enable the maintenance of debt payments.