Law Offices of Edgar P. Lombera

Credit Tip: Focus on your Revolving Debts FIRST! Not all debts are created equal. Revolving debt in the form of credit cards impacts your credit score greatly because agencies believe credit card debt is a more reliable indicator of risk as a borrower than installment debt. In addition, revolving debts typically have higher interest rates and your minimum payment is based on the amount you owe. (Department store credit cards are one example.) Paying down your revolving debts first usually means paying less in interest.

Under federal and state laws, some debts cannot be discharged under a Chapter 7 Bankruptcy. These include child support and alimony, student loans, income taxes that are less than three years old, and any court judgments against you that resulted from drunk driving.

Start your 2020 right and take control of your finances with this financial calculator. Figure out how long it will take you to become debt-free.

Credit Tip: Focus on your Revolving Debts FIRST! Not all debts are created equal. Revolving debt in the form of credit cards impacts your credit score greatly because agencies believe credit card debt is a more reliable indicator of risk as a borrower than installment debt. In addition, revolving debts typically have higher interest rates and your minimum payment is based on the amount you owe. (Department store credit cards are one example.) Paying down your revolving debts first usually means paying less in interest.