It’s a common story, a family that works hard and budgets will still get into debts problems. Why is this? Well, it’s often a number of factors that come together causing a financial crisis. Luckily, it can be weathered if you are in on some of the following family finance secrets listed below. Read on to find out more.
Watch out for student loans
For many people, one of the largest debts they have to pay off every month the student loan. This applies particularly to married couples and families because the repayments are calculated on the household income and not the individual wage of the person that is earning them. That means if one of you makes less, or is staying at home with the kids you will still be expected to keep up with your loan repayments, and if you don’t you run the risk of being in default.
To find out how this applies to your situation look up info on student loans and marriage, and how one affects the other. As well as consulting services that can negotiate a more favorable repayment situation. Something that can take off some of the pressure on your family financially, and may just be enough to keep you afloat during the tough times.
Bankruptcy isn’t always the answer
For many families, it seems like bankruptcy is the only answer when they find themselves in a position of overwhelming debt. Being bankrupt is when you declare that you have no more capital to pay off what you owe and your debtors are legally entitled to seize your assets in lieu of payment. Continue reading