The cost of living in Shreveport and other major metropolitan areas across Louisiana continues to increase while wages appear to remain stagnant. Many individuals reduce their outgoing expenses to keep up with changes; unexpected emergencies, however, cause many hard-working individuals to fall behind. 

According to a survey of 12,000 households conducted by the Federal Reserve, 40% of them struggle to cover a $400 emergency bill. As reported by CNBC, affluent families also have a difficult time paying debts, which makes it hard to come up with cash. Regardless of an individual’s income level, many Americans are living paycheck to paycheck. 

When earning more money is not possible 

It may seem as though finding a new job or earning more money would help to reduce the number of outstanding bills. However, open and available jobs often do not pay as much, and asking an employer to add more hours may not be an option. In some cases, earning an increased income may not help in catching up on overwhelming debts that continue to grow due to high interest rates. 

One option to consider is filing for Chapter 13 bankruptcy protection. By doing so, an individual may enter into an affordable and manageable repayment plan. A bankruptcy of this type presents options that may help in building a more positive financial future. 

Rebuilding credit after a bankruptcy 

After a bankruptcy filing, individuals can begin to regain control of their finances. Even though a bankruptcy stays on an individual’s credit report for up to 10 years, many financial institutions offer secured credit cards that may help in building a new credit score, as reported by Bankrate. With one or two new and carefully managed secured cards, it is possible to develop a better budget, rebuild one’s credit score and avoid falling into another debt trap in the future. 

Creating a new budget without the burden of unmanageable debts offers hope in moving forward. Keeping debts low and paying bills on time are some ways to improve a credit score after bankruptcy.