Debt is one of the main reasons why Americans have a hard time savings. In fact, one in three Americans have nothing saved for retirement while 62 percent have less than $1,000 in a savings account. For Tennessee residents who are having trouble with their finances, it may be a good idea to visit with a credit counselor. One warning sign that it may be time to talk with such a person is if monthly expenses exceed monthly income.

People who live paycheck to paycheck may have trouble paying an unexpected medical or car repair bill. Another sign that it may be time for people to talk with a credit counselor is the fact that they are making late payments, with penalties and late fees that can add up.

Those who don’t have a budget may also want to meet with a credit counselor. Having a budget makes it possible to know how much comes in during a given period of time and how much goes out during that same period. It is generally preferable to hoping that the debt problem goes away on its own. Credit counselors may be able to help with solutions to other financial issues as well.

People who are having trouble with their debt may sometimes find it advisable to seek protection from creditors by filing for Chapter 7 bankruptcy. An attorney may be able to help explain to debtors the benefits of such a decision and why it may be in their best interest to do so. Benefits include a stay from creditor collection as well as the possibility of having many unsecured debts discharged.