Submitted by Jen Jones on Sun, 06/19/2011 - 1:37pm
In these rough and tumble economic times, some households have been forced to put low-level, basic needs above long-term plans for higher education, turning to personal savings and what they previously considered to be college funds to fight off home foreclosure, meet mounting medical costs, and in some cases, even keep the lights on and food in the fridge.
Even more striking is that during the recent Great Recession and in its recent wake, many commentators have begun to question the very cost-benefit of analysis of spending for higher education versus the realities of the jobs (and salaries) earned as a result.
In fact, some financial experts are now changing their tune and saying that student loan debt can be worse than credit card debt, pointing to the fact that these educational loan payments are rising all the time and salaries that could, in theory, be used to pay them off, continue to stagnate. According to WalletPop, “student loan debt, which has flowed like water -- or more like home equity lines -- over the past 15 or 20 years, has grown to such an enormous level that American student loan debt has surpassed credit card debt and will likely be $1 trillion by the end of the year. And as credit card limits shrink, student loan availability seems to resist all good sense and propriety -- which might be fine, if indeed student loans were a worthwhile investment. But more and more finance experts are saying, ‘They're not.’”
In fact, it’s recommended that you try your very best to fund college with $0 in student loans; if only because you wouldn’t want to begin your post-graduate career with that same amount of unaffordable debt on credit cards. “But more and more students are choosing to do just that by taking on student loans. And student loan debt is even worse, because you can't discharge it in bankruptcy and student loan companies rarely, if ever, settle.”
Unfortunately, using credit for education is not necessarily the smartest move either. If you’re using credit cards to subsidize your child’s college education or even your own, you’re likely to learn a hard and fast lesson of debtor economics: credit card interest rates are on the rise, even as limits drop, and without assistance, thousands in tuition placed on plastic, can quickly snowball into a budgetary situation that fails you every single time.
However, unlike student loans which require “a substantial hardship” to be liquidated in bankruptcy, credit card debts, even those charged for educational purposes, can most easily be dealt with in the debt dissolution solutions that a bankruptcy affords.
In short, when it comes to curing credit card debts—for educational expenditures or otherwise—bankruptcy is in a class all its own.
So, if you are one of a growing number of American men and women who have mounting credit card debts related to educational expenditures and other budgetary blights, we know how to help. If you live in North Carolina and credit card debt has gotten you down, it’s important to understand that a qualified bankruptcy attorney can teach you the right ways to proceed on the path to a better financial future. In fact, the bankruptcy professionals at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-833-627-0115, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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