Is Your Debt Winning? 3 Tips to Watch Out

The difference between a normal amount of debt and an unhealthy amount is often difficult to tell. Many folks find that what they thought was a normal amount of debt suddenly becomes unbearable. I have three things that you should watch out for when your debt is starting to be too much.

First, DON'T simply make the minimum credit card payment. If all you do is pay the minimum, and keep buying things with your credit card, your balance will continue to increase. How so? Rather than get you out of debt, paying only the minimum traps you into debt because those payments never dent the actual balance. Not only will this increase the amount you owe, but will, in turn, cause the minimum payment to go up. Soon enough, you won't be able to pay the minimum.

Second, DON'T rely on your friends and family to get you out of debt. It's not a secret: when you are in debt, if you ask your loved ones for help, they most likely will give it. Nobody wants to watch a loved one struggle, and if they feel like they can help you, they will try. But, the generosity of others often comes with a very high price. You aren't just putting the most valuable relationships you have in jeopardy, but you are hiding from your own trouble. The charity of your friends and family will eventually cause you to think you are safer than you are.

Third, DON'T just hire a debt settlement agency because they make big promises in flashy advertisements. Unlike bankruptcy, which has almost 500 years of legal history, debt settlement is relatively new and has an uncertain future. Many times you must pay a steep fee before they even begin, and there is no certainty that they will be able to get you the settlement they advertise. Debt settlement agencies, furthermore, can't stop the credit agency from calling you nonstop, going after your other property, or wage garnishment.

Sometimes you might feel like you have no other options! But in reality, you do. A Chapter 7 or Chapter 13 bankruptcy could be a wiser choice than the uneasiness of making minimum payments, using your family and friends, or debt settlement agencies.

A bankruptcy attorney might be the perfect person to get you protection from foreclosure and credit card debt help. The thing is, for those who qualify, a Chapter 7 bankruptcy will not simply renegotiate debts, but eliminate them. Bankruptcy defends you from creditors by law, blocking collection calls and giving you relief from your creditors until you are financially secure.

Now, if you think you have been doing any of the DON'Ts you should probably do some more research on other possible choices.

About The Author James Brown is the founder and president of Castle Law Office, a St. Louis bankruptcy law firm that has helped over 30,000 families get debt relief. To learn more about St. Louis bankruptcy, request a free copy of James' book "Get Out of Debt: Secrets Your creditors Don't Want You to Know," at http://www.castlelaw.net .