by Semify
While no one actively tries to go into debt, certain life situations can happen, causing you to exhaust your savings and even max out credit cards to help cover the unexpected. Some may even find the need to turn to personal loans in order to make ends meet. Some of these cases include accidents that can put you out of work, an unexpected divorce, and home repairs that are essential and unexpected. Keep reading to see how you can get out of debt in these situations and find some financial freedom.
Debt Following A Car Accident Or Personal Injury
If you’ve been hurt in a car accident or suffered a personal injury on your job, or in public, you are likely having to take some time away from work. According to AllLaw, most U.S. personal injury cases are related to a car accident. When this happens, there’s an accumulation of medical expenses that build up, as well as property damage to vehicles, or the need to purchase a new one. If you had a negative equity on your car, you’ll also be forced to pay that sooner rather than later. Not being able to work and having bills stacking up can be overwhelming. If you’ve turned to your credit cards, personal loans, and savings account, you may not see an end in sight.
If you find yourself accumulating a lot of debt and getting calls from bill collectors, you’ll need to reach out to a personal injury lawyer and have them consult with you on your case. Most will do a free consultation, review your case, and if they can help you, they’ll take the case and start advocating on your behalf. In these cases, they look to get costs for all the debt you’ve accumulated back, as well as compensation for missed income, pain, suffering, and anything else related to your case, so you can pay back your debt and move forward.
Debt Following Divorce
When a couple gets married, they don’t assume there will be a divorce, but when it happens, there are debts and assets that need to be sorted out. Nearly 60 percent of all divorces involve individuals aged 25 to 39. Depending on what property you’re left with following mediation, you could find yourself overwhelmed with the situation.
Once you’ve been served with divorce papers, you should secure your own divorce attorney so that you can go over the expenses you share with your spouse, including assets and debt. They will let you know what you’re responsible for and help you avoid collecting so much of that debt. If you’ve gone through the divorce, and you’ve been left with excess debt, you may need to move forward with pursuing a bankruptcy lawyer and see about filing bankruptcy so that you can eliminate and consolidate your debt on a manageable plan.
Debt Following Home Repair And Renovations
As a homeowner, you’re responsible for keeping your home in good condition. In the event of a natural disaster, accidental fire, or other tragedy, you may find yourself overwhelmed with home repairs, replacing damaged property, and a swarm of debt that you weren’t expecting. According to This Old House, homeowners spend more than $10 billion each year on HVAC repair and maintenance services. Some things you can claim on your insurance, but when you need a new HVAC system or new roof because they’re old, that’s on you as the homeowner.
If you find yourself in debt with home repairs, you may have to consider doing one project at once and listing them out by priority. You will want to go to your mortgage lender and see if you qualify for a home equity line of credit, where you can borrow against the value of your home and do the essential repairs that you need to get your home back in good condition. These payments will fold back into your home payment and are easy to manage so that you don’t cover any unwanted debt.
Know All Your Options
When you see the debt start to pile up, it may seem like a knee-jerk reaction to pull out the credit card or get another loan to cover the expenses. However, know what all your options are and see if you qualify before you move to options that add more extensive monthly payments to your budget. If at any point you find yourself overwhelmed in any situation, you do have the option of filing for bankruptcy as a way to restructure the debt you have and stop you from getting more.
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