Debt Relief Options
There are so many ways in which debt can accumulate faster than your ability to pay it off. Whether you are struggling to make your mortgage, car, or credit card payments, there are several debt relief options available to you.
If you are considering bankruptcy, then you owe it to yourself to look at the other avenues you can go down before accepting bankruptcy as an inevitability. In other words, bankruptcy should not be your first option; it should be your last.
Sit Down and Study Your Finances
Even before you begin to look at external ways to solve your debt, think about if just need is a tighter budget. If you are buried in credit card debt, look and see where you are needlessly spending money. How many monthly subscriptions do you have? Can you eliminate your streaming services? Perhaps you can prepare your meals yourself. Every dollar saved is one step towards financial freedom.
The previous section might be more applicable to someone looking to get out from under some credit card debt. If you have a mortgage payment that you can no longer afford (i.e., if you lost your job suddenly), you can request a forbearance.
This will put a pause on your mortgage payments. Not only will you have to pay them eventually, but the interest will continue to grow during this time. If you choose to do this, save as much money as you can. Be disciplined in how you spend during this time. If you make reckless financial decisions with the extra money, you will end up in a bigger hole than when you started. And ensure that you understand the terms for how long the forbearance will last and how you will be expected to make the missed payments in the future.
Several nonprofit organizations serve as credit counseling agencies. The benefits include the ability to funnel all your attention towards one source. Instead of juggling credit card debt, car loans, and mortgage payments, you can just work with the agency. They will reach out to your creditors and let them know you are working on a way to pay them the money that is owed.
The interest rate you are accruing on your debt might get lowered. If you have been receiving calls from a collection agency, these too will cease.
You will, however, have to pay the agency for their services. Nonprofit agencies are not free. Another key point of advice is that there are a lot of predatory counseling agencies. Their aim could be to possibly exploit you rather than to help you. The National Foundation for Credit Counseling has a list of accredited agencies for you to choose from.
Maxwell Dunn PLC
If you are facing insurmountable consumer debt, the attorneys at Maxwell Dunn PLC can help. Sit down with experienced attorneys who can outline how bankruptcy can impact your financial future. For more information about debt relief, contact us online to work with some of the professional attorneys at Maxwell Dunn.See all videos