How You Can Get Rid Of Debt Before Christmas - 4 Tips

How You Can Get Rid Of Debt Before Christmas – 4 Tips

Although it may look like an impossible task to get out of debt before Christmas, but it isn’t so actually especially when you owe less than $10,000 to creditors. If you read this post and follow the tips mentioned here, then I’m sure you’ll be able to enjoy delicious foods and friendly banters with family without any debt problems or stress. So without wasting any time or words, here’s how to have a debt-free Christmas.

1. Take up a second job:

The thought of doing a second job after a tiring day might not be appealing to you but it can fetch you a good amount of money. Instead of watching Netflix in the evening, you can use that time to make money. Simple jobs like pizza delivery and writing articles can help you to get extra cash. Use it to pay off your debts. Focus on those jobs that give you a minimum of $200 – $400 per week.

2. Give a garage sale:

Take an inventory of what you have and throw a garage sale. I’m not saying that you should sell everything. What I’m suggesting is, sell the items that you don’t need. Try to pick up those items that have decent value in the market. Otherwise, you won’t be able to make a big amount of money. You can also choose items that you can’t sell on eBay due to shipping problems.

3. Settle your credit cards:

One of the fastest ways to get out of debt before Christmas is to settle credit cards since that allows you to pay less than what you owe. But for that, you need to save money first.

Create a budget to see how much you earn and how much you keep in your bank account. Thereafter, think about the ways to reduce your expenses so that you can keep more money in your bank account. You can use this money to settle your credit cards since creditors would expect a lump sum payment. See also: Is it possible to settle debt without hurting your credit score?

4. Opt for a balance transfer card:

A balance transfer card can help to reduce your debt load instantly. You can take out a 0% interest balance transfer card and pay off your outstanding balance on other cards instantly. Thereafter, pay off the new debt at a low-interest rate in the next 12 months. Check out – How to do the best credit card balance transfer to avoid mistakes!

What else you can do

Thousands of people are getting into debt at Christmas. Last night, when I was writing this article, I decided to check how many people go in debt for Christmas on Google. The results startled me. Nearly, 74% of Americans couldn’t budget properly for the festive season and incurred an average of $1054 of debt in 2017. As per the financial experts, if consumers make only the minimum monthly payment, then they won’t be debt-free before 2023. Adding fuel to the fire, consumers would end up paying $500 interest during the tenure.

It’s high time to stop going into debt for Christmas because that affects the overall financial planning in the next year. Remember, recession can hit the country at any time. So you should start taking steps to build a recession-proof financial life now on. And, the first step is to get out of debt before Xmas.

Do you feel that what I said is wrong from any angle? If so, then feel free to post your feedback in the comment section.

Have any ideas on how to pay off debt before Christmas? Share them with us too.

Posted in how
10 Financial milestones you should hit by the age of 30

10 Financial milestones you should hit by the age of 30

“Life begins at 30” – This statement does not apply when it comes to financial planning. If you are at the age of 30, you should have achieved some financial milestones by now. Otherwise, you may not be able to live a good financial life.
If you have not yet started to plan your personal finances, you should better start over now.
You may regret at the older age about not saving enough money earlier.

So, you are now charged enough after reading the introduction of this article and want to know which financial milestones to aim at the age of 30.

Here you go:

1. A proper financial goal

Well, to achieve something, you should make the plan mindfully. If you work hard without knowing what to achieve, then your effort can go into the vain. Thus, while managing money, it is important to set goals. This helps in achieving a financial milestone easily.

2. A well-planned frugal budget

One of the most important things which are to be included in your financial planning is frugal budgeting. This helps you to save more than what you usually do and it helps you to stay within your limits. Setting a personal budget is the first step to achieve important financial milestones. So, you should formulate a budget. If you don’t have time to formulate budget on your own, you can use any of the online budgeting tools.

3. Done with unnecessary expenditures

As you budget, you are required to list all of your expenditures – fixed and variable. So, you may be able to find out if there are any unnecessary expenditures. If there is any such expenditure or any other ones that you think you can do without, better cut down on those. In addition, try to lower the usage of credit cards as this helps a lot in lowering your expenditures. Remember, to achieve something, you need to sacrifice something. Hitting financial milestones is not easy. You have to practice to save money so that you can achieve financial milestones easily.

4. Have savings in a high yield savings account

It is important to start a savings account where you can put money. Try to put money into the account each month and avoid drawing the saved money. You should follow a formula of 30:50:20 (30% of income for saving, 50% of income for necessary expenses, and 20% of income for entertainment) while saving money in a savings account.

5. Established a loaded emergency fund

Only saving money into a savings account is not enough. By the age of 30, you should have a loaded emergency fund to manage emergency expenses like job loss, accident, natural calamities, and prolong illness. If you don’t save for rainy days, you may have to take out money from your other savings including retirement fund, which can be fatal for your post-retirement financial days. So, to safeguard all your savings, you should save enough money in an emergency fund. Try to save at least 6-9 months of savings in an emergency fund: if possible, save more than that.

6. You are debt free

You should try to get out of your current debts as soon as possible. If you are in huge credit card debts, then try to get out of them. You can repay your debts on your own by following the debt avalanche or debt snowball method. You can also consolidate your debt. Remember, having a huge debt can hurt your credit score, which can bar you from taking out loans at good rates and terms. Thus, you should repay your debts to maintain your credit health. Also, once you are debt- free, you can concentrate on achieving other important financial milestones before reaching 30.

7. Have one -year’s worth of salary in retirement fund

I am not telling you to build a fully loaded retirement account when you hit the age of 30. But, you should have at least one year’s worth of salary into a retirement fund so that you can manage post-retirement costs well. Remember, when it comes to building a nest egg, the sooner you start, the better. So, if your employment has the facility of 401(k) account, then start contributing money into it. You can also save 15%-20% of your income into any retirement account.

8. Done with some wise investments

Don’t start investing unless you have ample money for them. However, if you are earning well, then you can think about the investment even before reaching the age of 30. Just check out which investment options are more lucrative and easier to understand. Ask your peer group or have a chat with an expert regarding this matter. You can also start an investment portfolio when you become an expert in it. You can invest in stocks, shares that’ll help you get income and bonds which act as a hedge against inflation and that applies for gold too. You can also go for real estate investment when you become a seasoned investor.

9. Have a good credit score

You should try to build a good credit score at the age of 30. A good credit score plays a vital role in your financial life. As I have mentioned earlier that good credit score helps to get loans at favorable terms and rates. You can also prove yourself as a responsible person towards financial matters.

10. Have a mindset to build wealth

If you have your own property, you can take out a refinance mortgage so that you can easily pay back the loan and also build the equity on your home. You can use the money to make positive improvements on your home so that you get better resale value on selling off your property after 10 or 15 years. Later you can also go for equity withdrawal, which means you can withdraw from the equity of your house that has been built. But don’t try to do it and keep your house as it is for you need to sell the house at a better price in the future.

Well, there are many other financial milestones that you can achieve by the age of 30. It depends on how much money you earn and how you prioritize your goals. However, the key is to be a financially responsible person at the very beginning of your career to achieve these important financial milestones when you hit the age of 30. Otherwise, you will not be able to establish a secured financial life for yourself.

Posted in how
How can you make a perfect budget when you are jobless

How can you make a perfect budget when you are jobless?

In case you are laid off from a job and have to make ends meet, every financial decision that you make would be extremely crucial and important. This is not the time to make a decision in haste. You need to maintain a particularly positive outlook until you get your next job. Proper management of finances become tough when you don’t have a job. This is indeed a very tough situation when you might find yourself in a very helpless position. However, don’t worry, money management is tricky when you are jobless but not impossible.
Remember, budgeting after job loss can help you to manage your daily expenses. However, you should know the proper ways to formulate a budget to manage your finances in this hard time.
Here you go:

Tips to formulate a budget when you are jobless

Budgeting after job loss is difficult but important. If designed correctly, budgeting can help you get rid of the stress of your financial life. If you have adequate funds in your pocket, you would not have to be concerned about how to pay off your bills. With a proper budget in place, you have answers to these questions. Even when you don’t have a steady income, a budget can help you to manage living costs properly. A budget can help you pinpoint where to cut back your expenses. And, it also helps to manage your monthly bills.
Here’s how you can consider budgeting after job loss to manage your money.

At first, download the budget worksheet. You can also take a print out of the spreadsheet.
List down all your income. When you are jobless, your income is your existing savings. In this step, you need to list down all your expenses including your monthly bills like rent, mortgage payment, property taxes, electricity bills, medical costs and all other expenses that you incur on a regular basis. If the allocated amount for your monthly budget is negative, you need to think of ways to reduce your expenses.
In this way, by keeping a proper and realistic budget in place, you can manage your finances being a jobless person.

Below are some tips you should follow when you are laid off and have to create a budget:

Make a plan

Job loss is overwhelming, but you should stay calm so that you can make a solid plan for the crisis period. Talk to your family members regarding this crisis and seek their help. Request them to support you during this period.

Cut down unnecessary expenses

Before formulating a budget, you have to eradicate all the unnecessary expenses so that you can manage basic expenses within your small budget. You should budget your funds to buy daily necessities like groceries, food items, and necessary medicine. You need to stick to the budget strictly so that you can sustain your family as well as manage your debts (If any).

Prioritize your bills

When you don’t have a job, you need to prioritize your bills and decide which one to pay first. This is something that would always help you manage your finances. Start paying off with the most important bill. It is suggested that you pay for food and medical expenses first followed by the mortgage bills and then the car/gas bills.

Avoid expensive buys

When you do not have a job, it would be completely unwise to go for impulsive buys. You need to understand that your financial situation would not allow you to go for exorbitant buys. You should also request your family members to not buy expensive thing during this crisis period.

Ask for a severance package

In case you have been laid off, you need to make a sincere effort to negotiate a particular severance package with your employer before you officially leave your workplace. No matter how small the severance package is, it would be beneficial for your financial needs.

Finally, try to get a job. You can even do a part-time job when you have been laid off. The job might not be as good as the one that you had but at least some money inflow would always help you manage your finances. It’s better to have a little amount than not having anything at all. Remember, a budget would be your best friend when you have no job. To manage all the mandatory costs, you have to create a shoestring budget. If you feel difficulties in creating a budget after job loss, seek help from a financial advisor. Professional advice can help you to manage finances in a better way. In this way, you can also get back an optimistic attitude to life.

Posted in how
How seniors can easily pay off credit card debt?

How seniors can easily pay off credit card debt?

Debt among seniors has increased significantly in the last decade (83%), as per the data given by the Federal Reserve. Due to this debt burden seniors may feel a huge financial pressure upon them. That pressure may force them to do more work even after retirement.
Despite having a decent income and social security, many senior citizens have to use credit cards to pay their basic daily expenses. The situation is getting worse day by day, as the cost of living is getting high whereas the income is static. As a result, seniors are getting more inclined to credit card usage. But the harsh truth is, paying off high-interest credit card debts will likely be impossible for them.

What options do seniors have for managing their debt?

When seniors come face-to-face with a huge pile of credit card debt, they may experience severe stress and anxiety. This situation may summon serious medical conditions and their life may be at stake.
There is one more small issue. Seniors might also feel embarrassed to talk about their debt problems with their family members and friends. They also hesitate to take help from professionals.
So, their problem remains unattended. They start to lose hope in this case and do nothing about it. Finally, they face abusive collection calls or file for bankruptcy.
But practically, if they look closely, few solutions are there to help. Let’s look at them closely.

a. Getting help from your close ones

While some seniors may feel embarrassed about discussing their credit card debt problems, many of them may try to share the issue with their family and friends. Often, just talking about the problem may open new ways to solve it, and alleviate stress and anxiety. If you are having a similar situation being a senior citizen, one of your family members, a friend, or any other special person, having good financial knowledge, may guide you to solve your credit card debt problems.
Sometimes, just a little help with budgeting and money management can be a big considerable help. Some family members may help you to pay off your debts by providing monetary help or extend loans with 0% interest. Alternatively, they might also negotiate with your creditors or collection agents if accounts have gone into collection.

b. Apply for a reverse mortgage

A reverse mortgage allows seniors (62 and older) to borrow money against the equity in their home. Seniors can opt for monthly installments instead of having a lump sum amount from the bank. The lender receives the money after the borrower sells off the home and pays back the loan. The same thing happens when the borrower moves out to another home or dies.
Seniors should own the home entirely, or have significant part of home equity before opting for a reverse mortgage. The home should be their primary residence. Reverse mortgages can be written on owner-occupied single family homes, multi-family homes and condos, and manufactured homes that are HUD approved and meet the requirements of the FHA. The money taken out from a reverse mortgage can be used for paying off debts, especially credit card debts.
There are certain criteria to get the loan. The title should be in the name of the borrower. Real estate taxes should be paid timely and at the time of taking out the loan, it should be updated. The house should be in good condition, else the lender or bank may call off the loan.
There are several types of reverse mortgages available to seniors, so they should find the right reverse mortgage that fits with the financial requirement of them.

c. Refinance your existing mortgage

Seniors may also refinance their current mortgage with a low-interest loan if they have a good amount of equity and a steady source of income. This way they can encash their ownership a.k.a the home equity when they need urgent money.
However, if they have owned the home for a long time and the mortgage is about to be paid off, then refinancing the entire home again with a new loan will be unwise. Considering their current age and the life span, logically seniors may not carry a 30-year mortgage for another 30 years.
It means they can never become free from the mortgage burden. It may sound harsh but it is true. Apart from that, they may have to pay much more interest over the life of their mortgage.
Refinancing your current mortgage and using the money to pay off credit cards may give you a temporary solution. But remember, being a senior it doesn’t give you total relief from debts. Converting your unsecured debt (credit card debt) into a secured debt (home mortgage) probably isn’t the best idea to become debt free.
But still, if you are in need of urgent big amount of money, you may try this option.

d. Take out a home equity line of credit

If being a senior you have owned the home for a long time, or owe much less than the house is worth of, you may take out a loan against the home’s equity. It is called a home equity line of credit (HELOC). By using this option, a homeowner may use his/her home equity and take out a line of credit when needed. Generally, HELOC comes with a low-interest rate, which is much lesser than a credit card. So, paying off credit card debt with the help of HELOC sounds like a good plan.
There’s a catch. Like refinancing mortgage, you are also putting your home equity in danger. Turning unsecured debt into a secured one is not good. This could affect the total liquid assets of the estate in a negative way. If things go wrong, your house may fall into the depths of foreclosure. Losing a home being a senior and due to foreclosure is a devastating situation.

e. Selling your assets

Sometimes, selling off their valuable possessions or assets can help senior citizens to pay off debt. But it should be a last resort to manage their financial problems. Imagine you are selling your house, car, boat, or any other valuable possessions just for making debt payments, how would you feel? Being a senior citizen you might have an emotional bonding with your assets. So, when you need to sell them off, the impact on you can be traumatic.
So, carefully consider all the probable situations before making any decision. Paying off unsecured debts such as credit cards isn’t always the best choice if it pushes you into a financial black hole. It is always better to consult your situation with a professional financial planner.

f. Taking help from a debt relief company

Seniors can take the help of a debt relief company to tackle credit card debts. Debt relief companies can negotiate with credit card companies and lower the total balance owed. Generally, the debt relief companies handle all the communications with the credit card companies, which can remove a lot of the stress and anxiety involved.

So, there are many options available for seniors to handle the burden of credit card debt. Getting out of debt is not easy. But it is possible even for seniors who live on a fixed income. Seniors, sometimes with help from family, should consider all possibilities and do their due diligence to find the right solution.

Posted in how

How to become a smart shopper and avoid online shopping risks

It is easy to compare prices, save enough time, and also avoid the rush while shopping, as we have the internet at our fingertips. But online shopping is also a prime risk zone where people might become a victim of identity theft.

Recent studies show that nearly 51% of purchases are made online, and the number is still growing. This increase in online shopping has also made it easy for cybercriminals to harm common shoppers. Consumers are becoming victims just because more people are using the internet without knowing the potential risk and how to avoid such a threat.

So, before plunging into the internet, you must be aware of the do’s and don’ts of online shopping. This way you may protect your personal information and reduce the risk of an online scam or identity theft.


Compare prices and discounts –

Most of the online shopping sites offer great discounts throughout the year, but you must make sure you are getting the best discount available for your product. You must compare similar products with the value of their offered discounts, prices, and delivery charges. Choose the best item with the maximum discount available, and make sure you apply the right coupon code for the product.

Check out reviews –

No matter what happens on the internet, no matter how much discount you are getting, always shop after checking out the reviews given by previous shoppers. You can use your PC or smartphone to check reviews at any point in time. It’s better to buy products that have mostly positive reviews.

Prepare a list –

Make a quick list of the products you need primarily. Make sure you prepare the list considering the best brands, best prices, maximum discounts, and quality of the products. Now you can arrange the order of buying based on requirement or price. If you find out some items in your list are on sale, you may buy them first.

Create a budget –

Buying items on discount through online shopping can’t help you save money. You should set a budget for every item you want to buy. Set up the budget based on what you can afford and for how long you’ll be using the item.

Read the fine print on every item –

Most online shopping sites monitor their visitors and offer discounts on the basis of their age, spending pattern, choice of products, selected brands, and other important factors. While buying some item, make sure to go through the terms and conditions a.k.a fine prints associated with the product. It is possible that a certain big discount is applicable to you only if you purchase worth a certain amount, or buy 1 get 1, or on certain brands only. You might also need to check the guarantee and return policy of that product.

Use cash while making payments –

You’ll spend less when you purchase items with cash. Use cash while buying products from the store; you might get a good cash discount. Of course, it is easier to pay using a credit or debit card when you shop online. It that case, make sure you are paying back the card within 3 to 4 days after buying such products.

Verify the website’s security –

You must keep yourself away from the online shopping risks as much as possible. For that reason always shop from the website that is secured. How do you locate a secure website? Find websites with “https” in the URL, or look for a tiny padlock icon in your browser before you confirm the site as an authentic, secured website.

Keep tracking your statements –

Track your bank statements every month. If you ever notice a discrepancy, you may demand an explanation from the retailer. For example, if your credit card company overcharged you the interest on your credit card, you call the retailer and ask them to correct the error.


Avoid impulse buying –

It’s wise to avoid impulse buying as much as possible. If it’s not on your list, make sure you don’t add it for the time being. Online shops may give you lucrative discounts on items you don’t need right now. But, you should avoid buying those stuff you didn’t plan to purchase. This way, you can tame your overspending habit and save a decent amount from your monthly budget.

Stop using cards –

Using a credit or debit card for online shopping can trigger the chances of online fraud and identity theft. Once you provide your card details into the online shopping site money transfer portal, there’s a chance that hackers may hack your login and fetch your personal data from there. So, to increase your online shopping security, make sure you do not save your card details on that website just to make “one-click easy” payments.

Do not purchase food items online –

It is quite difficult to visit the grocery store, again and again, only to buy fruits and veggies. But presently, many websites deliver the purest form of food products, especially organic food or health products at cheap rates.

But do not buy food or health products online. Fresh food items and health products should be purchased directly from stores to ensure authenticity. Moreover, health products should be bought from popular stores since there are many websites online where fake products are being sold.

Avoid social networking sites deals –

Do not trust such deals. Most of the URLs appearing in social ads are customized and will redirect you to social media sites. It means you might get redirected to a fraudulent website. You can view those deals as the reference but go directly to the retailer’s website for more details.

Avoid taking your friends with you –

It’s quite amazing to go shopping as a group, or with friends. But trust me…it’s also dangerous.
If you need to shop smartly, it is wise to go alone. This way you’ll get most of the good deals left only for you; with friends you might not get all the offers and discounts alone.
Also, people spend more than usual when they are accompanied by friends. They may engage in impulse buying most of the time when they are with friends. As a result, they fall into debt trap.

Don’t use wire money to pay for any product –

After buying a product from an online auction site, such as eBay, the seller might ask you to wire your payment. That is a mistake, don’t do it. Wiring money may push you into a fraud situation. You can’t get your money back if the item you ordered never arrives. Pay with a credit card so you can dispute the charges if you don’t receive your item.

Don’t forget to inspect your new product –

Notify your seller as soon as you get your package delivered. Check your product properly and call the seller if you have any issues. The seller may pick up your package and if the issue is genuine, you’ll get the replacement or the money will be refunded.

Don’t shop using public computers –

Online shopping will require your personal financial data, like credit card number, name, address, pin code, etc. So, if you are using a public network computer, like the one at a coffee shop or bookstore, stop it right now to avoid online shopping risk.

Hackers may access your private data by accessing your account through the public network. Those networks are pretty vulnerable to hackers and they can easily sneak in. Shared computer networks can be bugged with spyware or other malicious viruses. These viruses can harm your computer and report your credit card information to hackers. If you really need to use a public computer or network, try scanning it first with an antivirus, internet security software like Kaspersky, Bitdefender, Norton, Mcafee, or any other software. These softwares can even increase your online shopping security to the next level if you use them at home, in your personal PC, laptop, or phone.

Do’s and don’ts of online shopping can be controversial. So, without thinking much, just follow your instincts. When you create your list, try to follow the order and don’t buy anything that’s not there. If you are getting a better offer for your product, check them out. But whatever you do, keep patience.

Posted in how
How will bankruptcy treat your debts and make you debt free?

How will bankruptcy treat your debts and make you debt free?

Bankruptcy deals with debts in a way, no other debt relief option does. By debt relief, we mean a process that helps to pay off debts.
That could be anything out of, Debt Consolidation, Debt Settlement, Credit Card Balance Transfer, or for instance, Bankruptcy.

In this blog post, we will be revisiting Bankruptcy. We felt people want to know Bankruptcy in an easier approach!
And, we aim to satisfy you with quality content and clear water information.
Bankruptcy gives you shelter from the cold threats and hot actions of creditors and collectors.
It forgives most of your debts, at times all! And, it gives you a new meaning to your life, if taken positively.
Many famous people have filed bankruptcy in the history of our nation.
Examples are big music bands, important political figures, Hollywood stars, and many more! Will Smith did it,

Abraham Lincoln did it,
Marvin Gaye went through it…… even did Mike Tyson.

In most of the cases, bankruptcy seems to work out in unexpected ways. It is noticed that people start to change after filing bankruptcy! Their financial habits change, their lifestyles change, and most astonishingly their social health changes.

Here, we will cover 3 important aspects of Bankruptcy:

  1. How Bankruptcy treats your debts. A breakdown of Chapter 7 and 13.
  2. Impact of Bankruptcy on your life, and a new beginning.
  3. How Bankruptcy affects your social health.

P.S: We will only deal with consumer finance, and center our discussion on Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 11 and Chapter 12 bankruptcy are mainly used by corporations and family farmers respectively.

The 2 different chapters of bankruptcy and their own individualistic treatment of debts!

The biggest fear people have when they think of bankruptcy is that they are going to lose everything to the court and creditors in the process.
By everything we definitely mean money, house, cars, personal properties and any other asset the filer has.
But, it’s actually not so!
Bankruptcy has been introduced into the law system to make us realize of our financial mistakes and help us lead a better life afterward!

Here’s what Chapter 7 does:

Firstly, this specific debt relief option, i.e a chapter 7 bankruptcy, is very aggressive and straight forward.
Its aim is to clear your debt mess once and for all. And, if you are filing this chapter, then you need to know that it has the power to liquidate all your assets and sell them off to compensate for your debts.
Chapter 7 has got the reputation of liquidation bankruptcy. But, you can still keep some of your assets as a part of the exemption.
Usually, you get to keep some of the equities on your assets depending on the exemption limit set by either the State or the Federal Government.
Some states might allow you to choose between either Federal Exemptions or State Exemptions, while others will only let you take the State Exemptions.

If you get the choice, then choose the one that lets you exempt or keep most of your properties!

It’s not quite possible to read out all the exemptions out here. For state exemptions read the Nolo’s article, and for Federal exemptions read the Bankrate’s article. They have explained it better and we believe no further explanation is needed.
Chapter 7 bankruptcy wipes out your debts by nearly forgiving most of the unsecured debts, but child support and alimony are exceptions!
On the other hand, tax debts are highly ‘misbehaved’ and they might hold on to your back, even after filing bankruptcy. They are not easily discharged!
Plus, if IRS has imposed any form of tax lien on any asset before the bankruptcy filing, then you might also not be able to sell off that asset in bankruptcy!
Also, Student loans are the toughest form of debt to be discharged in bankruptcy. You will have to show the court that making payments for the student loan will become an excessive financial burden or hardship.
And, that’s what Chapter 7 is talking about.


Here’s what Chapter 13 does:

Beautifully crafted, it’s easier to qualify for Chapter 13 than for Chapter 7.
Chapter 13 is also called reorganization bankruptcy, one that gives you time to manage debts over a spread out payment plan!
But, unlike Chapter 7 we won’t be selling off or liquidating assets, as we don’t need to! A debt repayment plan will be laid down and you will be paying off debts in a longer duration with systematic payments.
In Chapter 13 (also in Chapter 7… remembered to mention), an automatic stay will be imposed on you that will bar all creditors and collectors from making any attempt to collect debts from you.
But, secured debts might behave in some other way, and a secured debtor can file a motion of relief to lift your automatic stay!

Any other creditor can also do the same thing but the norms for filing such a motion is not easy to meet!
Discuss with an advocate about automatic stay and motion of relief, to understand the concepts in more detail.

Chapter 13 Bankruptcy, however, may or may not forgive your debts, which depends on their level of priority. But you can expect to see some of your low priority unsecured debts getting forgiven if you can show some type of hardship in making their payments!
Either way, both in Chapter 7 and Chapter 13, the secured debts have no chance of forgiving!
In fact, if you can’t carry on with payments according to the repayment plan, given in chapter 13, then there will be chances of foreclosure!
But, here’s one tip: Always try to file a no-asset bankruptcy (do your own research), if going for Chapter 7!!! In Chapter 13 however, try to carry on with your secured debt payments as per the repayment plan, to keep your property.
But, whatever it is, you can only keep your property if you can make the payments. Be it even bankruptcy.

Effect of ‘Bankruptcy’ on your ‘Social Health And Life’, and how you should respond to the new call:

If you are planning to file bankruptcy, then you must take it seriously, for it’s about to get a serious grip on you.
Bankruptcy is not just a financial term, that’s only expressed in numbers and dollars. It’s a deep event, that has a deep impact on your life.
Bankruptcy will change your life. It’s like a new beginning that will help you to realize about things, that you never quite understood before. It’s the depression I am speaking mate. It’s the ‘Significant Low’ that comes after the fuming ‘High Life’, you have led.
One wise person told me, to have fun, till the limit I wanted to! And then, when I would realize the mistakes, I should not repeat them. You can keep on doing mistakes till you yourself realize them.
And, bankruptcy exactly does that. It makes you realize your financial mistakes, it makes you understand your status, it makes you understand your ground, and most importantly it teaches you some big lessons.
Try to take the Bankruptcy Depression positively.

But, things might not be that easy either.

Bankruptcy affects your social health! People around you will start to behave and act differently. And, you will definitely notice them, for those changes will be highly noticeable.
Bankruptcy might promise you a new life, financially.
It will get rid of your debts and will make you debt free.
But, it does not guarantee you a happy social life.
However, you can always make things go your way if you are ready to accept changes and can be positive!
There are so many people who were actually benefited from bankruptcy. Slowly and steadily they tried out new sources of income. Got more money coming in. Started to practice new money habits. Planned on investments and made nice wealth overtime.
You can also do the same.
There’s absolutely no reason to withdraw yourself from social activities if your own people start to isolate you.
Time will give your options. There’s nothing to be shy, ashamed, or guilty conscious, just because you went bankrupt. It is for the help and benefit of the general people, do our law has bankruptcy in it.
It’s good that you have realized, and are ready to rectify your money habits.
It’s a good sign!
It means you are human, and therefore comprehending ethics!

Even if you feel, that you want to avoid bankruptcy, then I would say, you should choose debt consolidation or debt settlement.

They are far easier to go with, with no social health injury attached!
For more details on your case, please talk to a nearby advocate, or join online forums to discuss with other people, who are going through the same problems.
Some good online finance forum discussions can be found on:
FICO Forum
Bankruptcy Forum
Debt Consolidation Care Forum
Also, you can start a discussion On Stack Exchange or Quora!

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