Dealing In Debt Management

Bankruptcy Attorney

For many people, their debts sit on the backburner until a problem arises. Most people don’t even know their credit score until they go to seek out a new line of credit or get notified by a credit bureau of a problem. When it comes to debt management, active participation is key.

Take Action

Your debts won’t resolve themselves. Only you hold the key to the door between financial hardship and financial freedom. Although there are several options available for debt relief, here are the basics about each option and how it can help you:

Credit counseling— one of the most underutilized services in the debt relief industry is credit counseling. These agencies offer a range of services from simple educational courses about debt, a review of debt strategies, money management solutions and even financial planning services. Better yet, their services are extremely affordable to you.

Debt management – unlike a guided debt relief plan, debt management plans are an outlined strategy for eliminating debt that you tailor to your situation. Popular strategies like the “debt snowball” method or the “high to low” interest rate method are examples. Basically, you develop a specific payment plan for each of your accounts and stick to it over the course of a few months to years. The drawbacks with this method are that people rarely follow through.

Debt negotiation – negotiating your debts directly with your creditors is not something people often think is possible. You have the right to ask your creditor to lower your interest rate, monthly payment requirement or even principal amount owed. However, this strategy is often time consuming and does not come with a guarantee of results.

Bankruptcy— this strategy provides immediate protection from creditors while a plan is developed for debt resolution. There are two types of bankruptcy that can eliminate your debt burden, each with their own benefits and considerations. However, having your debts eliminated under court supervision ensure that you are offered the greatest chance at asset protection, such as halting foreclosures or repossessions. It is important that you work with an experienced Dayton bankruptcy lawyer when considering bankruptcy or any other time you have questions about your debt relief options.

Leave a Reply

Your email address will not be published. Required fields are marked *