There is no question, debt is one of the most complicated challenges that many American families face every year, and worst of all, sometimes it can be triggered by the unexpected, such as accidents, illnesses, storms, personal issues and so much more. Seems nearly hopeless to get out the tunnel, but it isn’t. We always get questions from our clients in regards to these topics, and today, you’ll have some practical answers that we’ve gathered all along, take a look.
Resolution of Debt
In this case, the procedure is non-traditional, and the main proposal is to hire a company that provides debt settlement options. They will be in charge of negotiating with your creditor in order to get a lower amount to be paid, this method can help you save great amounts of time, money and effort if it all comes right.
While your credit score might be affected by such decision, you must put in balance which path do you prefer in these difficult moments: (a) To pay all overwhelming debts with unique alternatives, (b) or to keep struggling and risking your future score.
The very popular tactic being used by thousands of families across the United States, and it consists in merging all debts into one unique amount (even if they come from different creditors), sounds easy right, but it has a certain level of complexity, although nothing that cannot be managed by yourself.
Our recommendation is to apply for a debt consolidation plan, in which you can find very useful tools that allow you to not only pay to one particular creditor, avoiding multiple ones, but also to meet deadlines at a lower interest rate that cannot be missed. In order to be eligible for any of these financial aid programs, you must commit to having a good credit score, and we can totally help you with that.
The Nuclear Option
That’s right, bankruptcy is the last option to consider, but it is also that, an option. Don’t hesitate to use it if you really need to be honest with your financial circumstances. If you are unable to pay back your debt then apply for this last resort that is completely legal that even billionaires have used it to their advantage.
By resorting to Chapter 13, you will not be cleared of all concerning debt, but you’ll be able to lower the amount owed. On the other hand, Chapter 7 is more aggressive, and it can have a lasting impact on your credit report, but the possibility of removing all your debt is nearly a fact, depending on your position, profile and situation.
Now you know many of the countless options to choose from in regards to wiping out that debt but is also good to know that by adhering yourself to good practices and habits, organizing your expenses and managing monthly budgets, most future mistakes can be avoided with the main goal of experiencing a more fulfilling life.