If You Have Unsecured Debt, You Are On 1 Of 5 Plans To Becoming Debt Free…. Which Plan Are You On?
No matter who you are or what you do, if you have any unsecured debt (credit cards, medical bills, private student loans, etc.) you are on 1 of 5 pathways to eliminating the debt and obtaining financial freedom:
- Making your Payments: This only works if you are paying more than the minimum payments. If you are not paying down the principal, you can make payments forever and will never be out of debt. This is a smart approach only if you can afford to pay off the principal quickly.
- True Loan Consolidation: this is a new loan that pays off your existing debts and hopefully, with a lower interest rate. Again, this only works if you make payments that pay off principal. It can be a good way to reduce the total amount of interest you will pay.
- Debt Workout/Settlement Plan: This is a strategic default with a plan to save monies up to settle with creditors for a discounted amount. Instead of making the monthly payments to your creditors, you keep the money and save it up so that you can offer a reduced sum as payment in full.
- Default on Debts with No Plan: When you do not pay your creditors, they may not do what it takes to get paid. Essentially you are “waiting them out” to see if they sue you. If they do not, and the statute of limitations runs out, you do not have to pay anything.
- Bankruptcy: If you qualify, you can file bankruptcy and pay unsecured creditors nothing.
There are pros & cons to all 5 debt freedom plans. What is right for you depends on your circumstances. It is always wise to get legal advice on what is best for you and your family.
At Fitzgerald & Campbell, APLC, our firm understands the difficulties that come with financial independence. We care for our clients and their needs, handling every case with a unique approach. For 30 years, our lawyers have assisted clients with debt resolution, and we've proudly saved clients millions of dollars.
If you're facing financial troubles, don’t go at it alone. We're confident our knowledge, skills, and experience will get you the financial refresh you need.
For a free consultation, call us today at (844) 431-3851 or contact us online.