Being nervous about opening your mail and having yet another bill is a crystal clear indication that it’s time for you to consider the options for lowering your credit card debt. Credit card debt settlement, consumer credit counseling and chapter 7 or chapter 13 bankruptcy are common ways to decrease or get rid of your debt. Each remedy comes with good and bad points.
Debt Settlement
You might need to pay a large amount of money at one time to settle the debt. In debt settlement agreements, the bank commonly agrees to take less if you can take care of it in a single lump sum. For somebody who is unable to make the bare minimum payments, this may not be probable. With no cash in a savings account to cover an agreement, this approach could cause more credit troubles. Not paying the bill while you save money for your settlement agreement may result in the loan company forwarding the account to collections or filing a legal case against you. If that happens, a bankruptcy attorney in Dayton OH may be able to assist you.
Credit Counseling
People who are not good at negotiating may benefit from the assistance of a financial specialist. Credit counseling is similar to Chapter 13 bankruptcy in that it entails negotiations as well as prolonged payment options. Because credit card companies are not obligated by the federal bankruptcy code in your case, they aren’t obliged to lower your rates. One past due or overlooked monthly payment may well mean the interest rate goes back up. Although financial advisors tend to be in a position to help decrease interest rates, they are simply a lot less able to assist you in lowering your principal account balance.
Bankruptcy
The third choice is bankruptcy, which is designed to wipe out or greatly reduce your overall unsecured debt. A bankruptcy attorney in Dayton OH can explain the pros and cons of bankruptcy to you. Some of the debts which are eligible to be wiped out in bankruptcy include things like medical bills, personal loans and credit card bills. Although bankruptcy can be a legal strategy to dissolve debts, it comes with a downside. Filing for bankruptcy leaves a note on your credit report which will be visible for up to a decade. If you choose to filing for bankruptcy, the Business Name can guide you through the steps.
