Whether a result of credit cards, personal loans, or a mortgage, debt can quickly get out of hand. Thankfully, there are a variety of methods to approach the problem and get it under control, such as filing for bankruptcy. If you're burdened with mounting accounts, here's a closer look at your options. 

How to Manage Debt

1. Create a Monthly Budget

Late fees are one of the quickest ways that debt grows. For that reason, it's essential that you make all payments on time. Help set yourself up for success by outlining all of your accounts and note who owns them and when the bill is due. Utilize this information to create a monthly budget so that you can effectively plan for payments based on your paydays. 

2. Choose Accounts to Pay Off

filing for bankruptcyInterest is another challenge standing in your way of becoming debt-free. Lenders charge interest on any balance that you carry over from the past month, which increases what you owe. To reduce your out-of-pocket expenses, throw additional funds you have at the end of the month at the account with the highest interest rate. 

In some situations, you may be able to settle the debt for less than how much is owed, which saves you money in the long-term. However, it's best to work with a bankruptcy lawyer for this process to ensure you're legally protected. They can also assist with the negotiation process. 

3. Get a Clean Slate

A traditional payoff approach only works if you have the funds. There's a point in which debts are so high in comparison to income that paying them off becomes unrealistic. In such a situation, it makes more financial sense to file for bankruptcy and get a fresh start. 

With Chapter 7 bankruptcy, most unsecured debts are completely eliminated in exchange for liquidating property. Chapter 13, on the other hand, consolidates the debts—usually reducing the total amount—into a digestible payment plan while allowing you to keep your property. An attorney can help you determine which option works best for your circumstances. 


If you've decided to file for bankruptcy, reach out to Sippel Law Firm PLLC in Kingman, AZ, to learn more about your debt relief options. The local bankruptcy lawyer has provided trusted guidance and representation to residents across Mohave County for over 40 years. Find out how the firm can help you by visiting them online and booking a consultation at (928) 753-2889.