Despite the ominous headlines about the national debt, the percentage of American households that have debt has actually decreased in the last decade, according to the National Census. Still, millions of Americans file for bankruptcy each year due to medical bills, lost employment, and other factors.

If you are facing insurmountable debt, then bankruptcy may be a viable option. There are also alternatives to bankruptcy that can help you manage payments and inch toward financial security. This article will discuss one such method, known as the “one-two payment plan.”

Break Down and Prioritize Your Debt

Making ends meet when facing steep amounts of debt can be a struggle—especially if you have a family. The truth, however, is that most Americans are in some kind of debt, which often involves expensive mortgages, high-interest credit cards, or student loans.

Many Americans want to end the burden of debt as soon as possible, which is why some of them dip into their savings accounts to pay off lenders. This article will discuss whether or not this is a smart idea.

Weighing the Options

San Antonio bankruptcy filings are at their lowest rate since 2006, but the decrease may be short lived.

New case filings in the San Antonio Division of the Western District of Texas, which covers Atascosa, Bandera, Bexar, Comal, Dimmit, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kerr, Medina, Real and Wilson Counties, fell 10 percent last year. Volume has declined every year since the Great Recession’s end in 2009. Observers cited a stronger economy fueled by high energy prices as the primary reason for this most recent decline. But, given that oil prices have fallen sharply to their lowest level in years, the area’s economic prosperity may be short lived.

The last oil bust, in the 1980s, triggered a ripple effect that plunged the state into recession.

Although most Americans have some form of debt, many could have avoided financial hardship by responsibly managing credit cards. Having funds instantly available is a great convenience, but overspending can put a person in a world of trouble.

Minimizing expenses is the first step for getting debt under control. Then, develop a budget that incorporates personal income, assets, and expenses. This can be a difficult task, which is why you should consider consulting a financial advisor or an attorney. If the debt amount is too great to pay off in a reasonable time period, consider discussing the situation with a bankruptcy lawyer.

Reasons and Alternatives to Canceling Credit Cards

No one wants to be in serious debt, however, carrying some form of debt is unavoidable. To start, everyone needs to build credit, and one of the most effective ways to accomplish this is by taking on “good” amounts of debt and paying it off in a timely fashion.

While credit can be a luxury for some, for others—especially those in a low income bracket—credit becomes a way to help with bills, groceries, and other daily expenses. Unfortunately, even a small amount of debt can be a precursor to bankruptcy if a person falls on hard financial times.

The truth is that filing bankruptcy is a smart decision in many cases. However, there may be other ways to solve debt problems. One method that many people consider is consolidating debt by taking out a loan. This often is an effective strategy, but it is important to understand a few basic aspects about debt and loans.