For anyone dealing with mounting debts the decision to take action isn’t as easy as you might think. Which option is best? How will assets be affected? Will there be any challenges in future credit? All of these are valid questions that should be asked before deciding on any debt relief strategy. Here is why:
Not all financial situations are the same. Everyone’s financial standing is unique to their combination of income and debt levels. Therefore, choosing which debt relief strategy is best must be based on an individualized analysis of that situation. There is no cookie-cutter answer that fits all, or even common situations.
Instead, consult with a debt relief specialist or Cincinnati bankruptcy attorney about your options for debt relief. Even if you choose a non-bankruptcy option, an attorney can still help you determine which option is best and even guide you through a process of negotiating with creditors.
Not all options are created equal. There are several different debt relief strategies that range from simply outlining a strict budget with plan to funnel your extra cash towards debt payments, to having your debts eliminated in bankruptcy. Along the way are other options like negotiating reduced debt balances or payment requirements, and even taking out a large loan to payoff smaller debt accounts. The problem with any one of these strategies is simply how it will impact your payment requirement, the risk of asset liquidation or result in additional credit damage.
In a nutshell, debt management plans and negotiations are for those who can afford to make moderate monthly payments and have no risk of asset liquidation. Debt consolidation loans are tricky and should only pursued with caution. Filing for bankruptcy is a solution that can offer a wide range of benefits such as protection from creditors, reduced or eliminated risk of asset liquidation and minimal monthly payment requirements.