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Sam Calvert


Over the years, education loans, medical bills, and mortgage repayments can soon pile up, which can leave you saddled with debt. So to help you avoid making basic errors when dealing with insurmountable debt, Sam Calvert, Attorney at Law, has put together a list of the most common mistakes people make when in debt.

1. Procrastinating
Many people in financial trouble often do nothing and hope it works out. If you are falling behind each month or using your Chase credit card to buy groceries, as a result of sending all your wages to Discover and MasterCard, stop for a moment and evaluate your situation.

2. Cash in 401(K) to pay credit card debt
Early withdrawals of your retirement fund will mean you lose out on a tax-saving instrument that is compounding over time. You may also face a federal tax bill, besides attracting a ten percent penalty on the withdrawn amount.

3. Pay your relatives debt
If you are filing for bankruptcy, then your spouse is not obligated to do the same. Also, don’t make the mistake of taking what few funds you have to help pay off a family debt, which could lead you into financial difficulty.

4. Take out a home equity loan
Unlocking cash in your house may provide short term relief. However, keep in mind that interest rates fluctuate, which means further down the line, you may be in a worse situation. The moral is to keep up your house payments, rather than put your number one asset in danger. 

5. Hire a debt settlement company 
The firm that you hire may not be able to settle all your debt. Also, many of your creditors may refuse to work with the company, which will have severe repercussions. It’s best to familiarise yourself with the bankruptcy code and approach a bankruptcy attorney that can assist you.

On a final note, It’s imperative to address the reason you got into debt in the first place, so to avoid these mistakes and receive a free consultation, reach out to the experts at Sam Calvert, Attorney at Law. I have been practicing law in St. Cloud since 1978 and graduated from William Mitchell College of Law in St. Paul, Minnesota.

I’m an expert in litigation and business bankruptcy, and can consult you on chapter seven, chapter eleven, and chapter thirteen bankruptcy.

For a complete list of my services, please click here. If you have any questions about bankruptcy, I’d love to hear from you. Please contact me here. 

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