Many Arkansas residents are struggling under a mountain of seemingly insurmountable debt. In many cases, student loans play a role in that debt and make it difficult for recent graduates to gain their financial footing as they enter the workforce. Some borrowers are tempted by debt relief offers, many of which tout the recently proposed Student Aid Bill of Rights backed by President Obama. When considering such offers, consumers should understand that there is no firm plan currently in place, and there are no debt relief programs that will lead to the total discharge of debts.
When financial troubles abound, many in Arkansas take on a significant volume of stress. Over time, this can lead to health issues, both physically and emotionally. A recent study looks at how debt impacts emotional health, and the results may be of interest to many consumers who are in search of debt relief options. When it comes to protecting one's health, virtually no measure, including bankruptcy relief, should be excluded from consideration.
Financial hardships are known to bring about high levels of stress that can devastate Arkansas families. Once debts become overwhelming, harassment from creditors and the threat of imminent legal action typically escalates the tension. Considering the potential solutions may prove difficult and confusing; however, being fully informed about one's legal rights and the pros and cons of various options, such as Chapter 7 bankruptcy, may allow one to make informed decisions.
Arkansas residents who are struggling with overwhelming financial obligations may be interested in a recent Supreme Court decision that may limit their rights in Chapter 13 bankruptcy. The Court has rejected an argument that the refusal of every proposed bankruptcy payment plan allows for an appeal.
For Arkansas families depending on credit cards to carry them through the month's spending, it is important to know that experts believe that a large amount of credit card debt can hurt overall credit ratings. The Federal Reserve Bank of New York released figures that show that credit card debt nationwide is now at $700 billion while revolving credit in general tops $887.9 billion. Experts fear that some debtors may be under the mistaken impression that a large credit card balance builds a favorable credit rating.