There are so many ways debt can accumulate faster than your ability to pay it off. Whether you're struggling to make your mortgage, car, or credit-card payments, there are several debt-relief options available to you.
If you're considering bankruptcy, you owe it to yourself to look at the other avenues first — bankruptcy should not be your first option; it should be your last.
Sit down and study your finances
Before looking at external solutions, ask whether what you need is simply a tighter budget. If you're buried in credit-card debt, look for where you're needlessly spending. How many monthly subscriptions do you have? Can you eliminate streaming services or prepare more meals yourself? Every dollar saved is a step toward financial freedom.
Mortgage payments
If you have a mortgage payment you can no longer afford — say, after a sudden job loss — you can request a forbearance to pause payments. You'll have to pay them eventually, and interest continues to grow, so save and spend with discipline during that time. Make sure you understand how long the forbearance lasts and how you'll be expected to make up the missed payments.
Financial counseling
Several nonprofit credit-counseling agencies let you funnel your attention toward one source instead of juggling credit cards, car loans, and mortgage payments. They reach out to your creditors, may get your interest rate lowered, and can stop collection calls. You'll pay the agency for their services — nonprofit doesn't mean free — and beware predatory agencies. The National Foundation for Credit Counseling maintains a list of accredited agencies.
If you're facing insurmountable consumer debt, the attorneys at Maxwell Dunn PLC can help. Sit down with experienced attorneys who can outline how bankruptcy could impact your financial future. Contact us online to get started.
Talk it through with us
Have a question about your situation?
