How the Community Can Help People Stay Out of Debt

May it be a mortgage, credit card, or business credit, many Americans are in debt one way or another. Many Americans have about $90,000 in debt. This highly differs by generation, but average millennials, the currently predominant generation in America, are at least $70,000 in debt. This is detrimental to every American’s growth in the country because how can anyone live their lives properly when they’re paying for their debts until the day they die?

Sometimes we need help. Thankfully, we have the community to help us out during these dire situations. The community can help you out if you’re struggling to pay your debts. It can help those that are in need. Here are some ways your community can help its members to stay out of debt.

Low-income Financial Assistance

There are about 34 million families in the US living in poverty in 2018. Most of these families are earning well below the median income of an average American household, which was $64,000. These families struggle in paying bills, and most of these families are also in debt from various financial institutions. These are the priority members when it comes to getting financial assistance.

Communities can aid these low-income households by helping them join various government programs. The government offers many benefits to those households that earn less than the median income. These benefits include the Supplemental Nutrition Assistance Program (SNAP), Medicaid, and the Low Income Home Energy Assistance Program (LIHEAP). These programs help low-income family members stay out of debt when it comes to their necessities.

Furthermore, the government can also offer financial aid to these families. The Temporary Assistance for Needy Families (NANF) program gives cash to low-income family members until they can reach self-sufficiency. The Supplemental Security Income (SSI) offers money to those families that have low-income seniors and disabilities. All of these programs are available in your community.

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Attorneys and Lawyers

Your community should have attorneys and lawyers at your service. These professionals can help you settle debts and claims if you ever go into an accident. Some of these professionals may have been feared by some individuals. However, you shouldn’t worry about attorneys who collect your debts. They can help with how you can pay your debt or even ask for a non-profit organization to do it for you.

They are also very helpful in the community as they can teach individuals how to manage their finances. Additionally, they can help with collecting payments from clients for small businesses in your community. These attorneys have a lot of functions that can help your community to be debt-free.

Financial Counselors

Ultimately, financial counselors are the best professionals to have in your community when managing debts. These professionals work day in and day out with people in debt, so it’s ideal to have at least one of them in your community.

Financial counselors (also known as financial advisors) help individuals to manage their debts. They also help them with other finances such as investments and tax and estate planning. They are the best professionals to proactively protect community members from debt. Financial counselors can also help with the next thing on this list, which is debt management seminars.

Debt Management Seminars

Communities should implement debt management seminars for various individuals in the community. These seminars should feature government programs that help low-income families, such as the ones stated before. Additionally, these seminars should tackle the do’s and don’ts when it comes to being in debt. Debt management seminars can also have professionals that various individuals can consult. These can significantly help them manage their finances, so they can avoid being in debt.

These debt management seminars can also aid families to cancel certain accounts they don’t need. Sometimes individuals in a community have many subscriptions they don’t need. As of the moment, they don’t see that yet. By having a seminar to handle these decisions, they’ll feel more comfortable canceling their subscriptions.

Lastly, debt management seminars can have support groups to help various individuals let out their frustrations regarding their problems. Debts can be detrimental to a person’s mental health. If their mental health continues to deteriorate, the more likely they’ll stay in debt. Support groups can help individuals let out what they feel and face another day with renowned vigor.

Debts are a serious problem for every American family. It can lead to many other issues that can, in severe cases, put a family into poverty. However, the fight against debt should not be done alone. Look for help and ask for it because your community will certainly help you out to get you back on your feet.