Seeking Relief from your Debt
The phrase “debt relief” is used to refer to making a change in the terms of your debt. When you seek debt relief, you are looking for a way to eliminate your debt more quickly. Living by a strict budget will only get you so far. If you have made significant financial cut-backs and you are still struggling to pay your bills, it is time to consider your debt relief options. Our next four blog will discuss various debt relief options including filing bankruptcy, debt management plans, debt settlement, and do-it-yourself options.
It is important to understand that some debt relief tools may lower your debts, but they will also negatively impact your credit score. There are also certain types of debts that cannot be eliminated, such as student loans, child support payments, and loans secured by collateral (your home, vehicle, etc.).
Before you commit to a debt relief option, you should confer with an experienced attorney. Debt relief is not an “easy fix.” In fact, if your debts can be paid by making changes in your spending habits, you should make the changes and avoid the damage to your credit rating.
So, how do you know when you should seek debt relief? There is no easy answer because ever individual’s situation is unique. However, the following a few signs filing bankruptcy or pursuing debt settlement is warranted:
- It is impossible for you to repay your unsecured debts (credit cards, medical bills, etc.) within the next five years
- You have little or no non-exempt assets
- The total of your unsecured debt equals half (or more) of your gross income
- Creditors are filing collection lawsuits against you
If you believe you can repay your unsecured debt within five years if you consolidate your debt and live by a strict budget, you should do so. If you don’t know which option you should pursue, contact Fitzgerald Campbell for help.
Whether you owe the debt or not, you deserve to be treated with respect and fairness. Contact our California Debtor Protection Law Firm with your questions, comments, and concerns, or for a free consultation. Speak to a CA credit card lawsuit and collection harassment lawyer at our firm today
Posted in: Debt Relief