There are a few things fundamentally understood when offering financial support to family members, usually an adult child or an aging parent. The first is that we want to do it. The second is that we expect them to find their footing in the near future. Lastly, it is well understood that constantly bailing them out of trouble and being a crutch will only cause them to fall into a state of co-dependency and reliance.
A lot of personal debt that consumers are paying for is considered non-deductible. Many are paying interest on credit cards, car payments, etc. The interest that is still considered a deductible is your home mortgage interest, and investment interest. Each year, if you are paying substantial interest you may want to consider converting your non-deductible interest into interest that is deductible.
The decision to file for bankruptcy is a huge one. Many people make the decision because they find themselves in over their heads in debt and don’t see a way out of the mess they’ve created. While the federal government does allow financially overwhelmed consumers to file for bankruptcy protection, it’s important that everyone considering doing so educate themselves on the process and how bankruptcy will affect their lives. Read on to learn some important tips that consumers need to know before they sign on the dotted line.