A year-on-year comparison of the month of January shows that average credit card debt in Hawaii dropped 11% to $7,524, according to a report from creditkarma.com. An article in the Pacific Business News reviews further statistics on Hawaii residents’ mortgage debt, credit scores, auto loan debt, and student loan debt.
These statistics are telling – in our everyday interaction with individuals and families here in Hawaii, we find that people are suffering from increased debt loads and a decreased ability to service that same debt. One way to determine whether you are in need of a Chapter 7 bankruptcy or Chapter 13 bankruptcy is to organize a budget. Set out all of your income – salary, business, social security, pension, family contributions, etc. Then list out your fixed costs – mortgage/rent, car payments, insurance, etc. Then add in your variable costs – utilities, gasoline, food, clothing, entertainment, etc. If your outflow/costs exceed your inflow/income by a significant amount, and you don’t expect much to change in the near future, it may be worthwhile to consider whether bankruptcy is an appropriate solution to help you get a fresh start in your finances.
There are quite a few resources available virtually, such as online credit counseling services provided by Abacus, or in person in Honolulu, with services like Consumer Credit Counseling Services of Hawaii, that can help you to create a budget and analyze whether you need assistance with your debt. You can also call us now at 589.1010 to set up a free consultation with our Hawaii attorneys.