Floridians who are confronted with overwhelming debt will consider many options to improve their circumstances. While bankruptcy is a definite alternative, some will try other strategies first. Regardless of how the person tries to get on stronger financial ground, it is important to bear in mind the potential effectiveness of bankruptcy.

One theory that might be useful in reducing debt is the “snowball” method. If, for example, a credit card company is owed $100 and another is owed $1,000, paying off the $100 debt as soon as possible is preferable to trying to pay off the higher amount because it will be cleared faster. Once the smallest bill is paid, the debtor will move to the next smallest bill.

Debt is a problem throughout the nation. By the close of 2019, the total debt for U.S. households, including mortgages, was more than $14 trillion. Credit card debt was $930 billion, and an average household owed almost $6,200. Debt-snowball can do the following: provide motivation because it is a viable strategy, give a psychological boost because it inspires the person to stick to it, gives faster results as smaller debts are eliminated, holds the debtor accountable in ways beyond creditor pressure and fear, and is the catalyst for changes in behavior that led to the debt in the first place.

After trying tactics like debt-snowball or any other possible way to clear debt, bankruptcy may be the preferable choice. Whether it is a Chapter 7 liquidation or a Chapter 13 payment plan, personal bankruptcy can get rid of unsecured debt and allow the debtor to retain certain properties. It can stop the harassing calls, end collection practices and let a debtor move forward. A law firm experienced in bankruptcy may explain the process and help with a case.