Out of three choices, debt consolidation loan, credit card assistance program, or bankruptcy lawyer, what is the most reasonable way to pay off my debts?
7
✅ Answers
? Favorite Answer
It depends. One size does not fit all. How much total debt do you have? How much income? Do you have savings or other assets? Do you think your situation may change in the near future? Where will each strategy leave you in a year? 3 years? 10 years?
Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).
– Debt consolidation loan: Doesn’t really achieve much as you’re just transferring debt from one place to another.
– If you’re overwhelmed with credit card debt and you’ve exhausted all self help options like slashing expenses to the bone, selling valuables and getting extra work, then there are really only 2 options: Entering a debt management plan through a non profit credit counseling firm like NFCC or filing for Chapter 7. NFCC can negotiate reduced payments and interest but NOT settlements. Referral at: http://www.nfcc.org/ – If this does not work out, the other option is Chapter 7 bankruptcy, which should be reserved for a financial emergency, where the debt is overwhelming and beyond your ability to pay. It should not be filed because you have $9K in credit card debt that you don’t “feel” like paying back.
Stay away from any debt consolidation firm that promises to cut your debt and payments in half. These firms work by having you deliberately default on your credit cards to settle for half. This is a risky process and your creditors might respond by taking you to court to get a judgment.
There is no best short of learning to live within your means and paying the debt off.
Of the 3 you listed, none are good.
A debt consolidation loan is worthless unless you cut up the cards. Many people get said loan and the use the cards again. Then they owe even more money.
Credit card assistance program. If you are talking about working with the lender, sure, go for it. Just don’t pay someone else to do it for you.
Bankruptcy lawyer. This is not a get out of jail fee card. This is a desperate solution. It tanks your credit rating for 7 years. AS IT SHOULD. You borrowed money and failed to pay it back.
Three Suggestions 1) Consolidate your debts 2) File bankruptcy (bankruptcy is not advised for all cases) 3) Contact a credit counselor debt-trap.com
i keep in mind that congress became genuinely searching into this variety of difficulty yet i do not keep in mind that something has been finished about it. have you ever tried finding out Suze Orman’s internet web site or her television software? This genuinely appears like a strong question for her to respond to. what’s your FICO score? this would also impact the interest fee charged. i keep in mind that part of your FICO score considers your debt ratio. in case your FICO is low – then your going to have a heck of a time getting that interst fee down. Do you personal your residing house? if so – a house fairness line of credit or second loan would have a decrease interest fee. then you may take out the interior most loan and pay off your charge playing cards. basically be careful – do not get baited into surely a form of loopy hybrid, interest in undemanding words, ARM mortgages. Do you’ve a vehicle it particularly is paid off and is worth over 9000? Take your identify for your economic employer and note in the journey that they could supply you a vehicle personal loan adversarial to it. i’d be careful of a identify personal loan position.
i agree none of those good realy. Keep a tight fist in future. work out a budget to pay off outstanding money and don,t spend any more cash on things you can realy do without. not much help. but been there done that and it,s hard, but at least you get there in the end. Actually it,s quite a kick to see how little you can manage on. It,s a good challenge to set yourself.
Source(s): personal
the best way to not be in debt on your credit card, is to not spend more money than you have.