ARAG Legal Insurance - Badge
Avvo Rating - Badge
Lawyers.com - Badge
Google Rating - Badge
Better Business Bureau - Badge

Dangerous Debts Increase Stress

Liviakis Law Firm Team

Debt. It is a word that scares the best of us. For most people, it is a sign of a problem. A sign that their finances are out of control and they need help. Some people even carry debts that are more serious than others. For those people, dangerous debts increase stress. Since money problems are the number one relationship killer, it is important to know which debts are particularly dangerous.

Dangerous Debts Increase Stress

Not all debt is bad. In fact, having some debt can be good for your financial profile and credit score. However, there is a fine line between good debt and bad debt. The worst type of debt is credit card debt.

This may seem like an odd concept, but think about it. Credit card debt is a type of revolving debt. Unlike other sources of credit, the amount you can borrow keeps going after you pay it down. With a traditional loan you would need to reapply and get approved to borrow more after repayment. A credit card keeps your borrowing window open. This leaves room for overuse of the credit.

As you pay down your balance your available credit increases. It is a debt trap. Proper money management can be difficult enough. The revolving debt cycle increases the chances someone sees the available credit as an opportunity. The cycle repeats and many people never stop the cycle. Similarly, the stress caused by the cycle continues and people grow into a feeling of hopelessness.

Debt Solutions To Stop The Cycle

On the bright side of credit card debt is that it is unsecured. That means it is not tied to any asset or collateral, which makes it easy to eliminate. There are a few ways to get rid of credit card debt. First, a traditional debt management strategy like the “snowball method”. Pay as much above minimum as you can until you pay off the balance and then close the account. If you are experiencing more serious debt management problems you can eliminate your credit cards in bankruptcy. Bankruptcy lawyers in Sacramento can review your debt relief options both with and without bankruptcy.

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

Wes Pohl

I nothing but great Experiences, and great service.

Tony Boone

Positive: Professionalism, Quality, Responsiveness, Value

Linda Todd

Contact Us

Fill out the contact form or call us at (916) 459-2364 to schedule your free consultation.
  • Language.png Free Consultation
  • Phone.png Phone Appointments Available
  • Gavel.png Talk to Award Winning Attorney Today

Leave Us a Message