Are you worried about answering your phone, because it might be the bank or the credit card company calling about your debt payment? If that is the case, then you are not alone. However, obtaining relief from their burgeoning debt is something many people wish for. However, the challenge arises when your debt load spirals out of your control, and digging yourself out becomes a major challenge.
Therefore, to access what options you are left with your staggering debt, first, take a deep breath. Then, after thoroughly analyzing the debt situation, you need to evaluate your bailout options. One of them is bankruptcy, that not particularly a pleasant option, but at least you do have options. This article sheds light on the possible debt relief options. Let us have a look in detail.
Your Debt Relief Options
It is wise to talk to your credit card companies. Although, it is not the ideal situation for a credit card company; however, in some cases, they should come to a payment arrangement with the consumer rather than have the bad debt provisioning. Besides that, if you are dealing with a mound of credit card debt, then it can be well worth your time to pick up the phone and try to obtain credit card debt relief by negotiating with your credit card company. There is a likely possibility that an arrangement may or may not work out with them. It is advisable, to negotiate a lower interest rate, a repayment schedule that fits your budget or some kind of debt settlement that lets you pay less than the balance you owe, sometimes a credit card company can be more flexible than you expected.
Don’t Avoid Your Debt: Stay Aware
The foremost step towards dealing with your debt problem is not to avoid it. However, if you have a habit to block your unopened bills in a pile, then now is the time to open all of them. It is wise to make a list of the debt that you owe and make the minimum payments that are required. Besides, look at the amount of income you have coming in against the expenses that you have and have a clear picture of exactly where you stand. It is very important to know exactly how big debt burdens you have along with how far short you fall in terms of your means of paying off your debt. Otherwise, you will not be able to make the decisions necessary to begin dealing with your debt.
Dealing with your mortgage
You might want to consider refinancing your mortgage with either your current lender or a new one if interest rates are low. However, if you have decided to refinance, make sure to check out all the options available to you. Besides, you need to check if you have any other options either to reduce your current monthly mortgage payments or to suspend them under any government modification programs.
Get credit counseling
Working with a certified bankruptcy attorney from a credit counseling service will help you get a clear view of the options available to you, including any debt relief programs that are available to you, and teach you to make and maintain a budget. However, many nonprofit organizations offer credit-counseling services and you might be able to receive counseling sessions for no fee.
Acquire a debt consolidation loan
A debt consolidation loan enables you to pay off your debt, and leave you with only one-month payment to deal with. Either you opt for a debt consolidation loan that consolidates all your debt or a credit card consolidation that allows you to pay off all your credit card debt, former will be at a lower rate of interest as compared to the debt you are paying off. Hence, you will still have to make monthly payments, but the payments need to be lower as compared to your all credit cards and/or debt in total.
Dealing with student loans
It is advisable to talk to your lender to see what options you might have if student loans are causing you problems. For instance, might be you can arrange for a better payment plan that works within your budget. However, the options available to you depend on the type of loan you have.
There are situations in which bankruptcy is your only real option. However, when filing for bankruptcy, you can choose between a Chapter 7 bankruptcy or Chapter 13 or Chapter 11 that will have the effect on eliminating your debt or reschedule your debt payment amount over a while. Precisely, there are a lot of pros and cons when it comes to deciding whether filing bankruptcy is a good option given the circumstances, or you might want to consult with a lawyer to get a bankruptcy evaluation.
Unfortunately, staggering debt will leave majority people handicapped when it comes to financial strength. Resultantly, the financial constraint negatively affects their life in multiple domains starting from domestic to official arenas. Therefore, if you are suffering from the debt problem, then it is wise to call out your feasible options at first that includes rescheduling or paying off the minimum amount of loan to continue the going concern of the business.
In such a situation, you need to call out the creditor or the lender to negotiate the middle ground for the loan repayment or consider other option that highlights bankruptcy. After deciding that you are going for bankruptcy, decide according to the situation the kind of bankruptcy you are going for. It will help you in keeping your business in a going concern coupled with the income inflow against the expected expenses. Precisely, if you are worried about the burgeoning loan then sit tight, and relax. Analyze your loan amount, and contact a bankruptcy attorney who can help you in your financial distress by telling you the possible options you have to come out of that situation.