The average American owes approximately $38,000 in debt, and this does not include mortgage balances. This amount does include student loans, credit card bills, and car loans, though. Where do you stand with your debt compared to this amount? Whether you have more or less, you should seek help for it if you are having trouble repaying it. When you cannot pay your debt, you will likely sink deeper each month. Therefore, seek help soon and evaluate these three forms of debt relief solutions.
Credit Counseling
Some people prefer using credit counseling for debt relief, and a debt relief lawyer can explain this and walk you through it. The basic principle with it is that you repay your debts through a repayment plan. You will repay 100% of the money you owe, but you get to do this over time. You may have a four- or five-year plan, and in the end, you will owe nothing. The downsides with this plan are that you must repay all your debt and that it takes time to finish the plan. The benefit is that it might not harm your credit score as much as other options.
Debt Settlement
To use a debt settlement plan, your lawyer would assist you with working out deals with your creditors. You agree to pay them a percentage of what you owe, and they accept the offer as a settlement. You can repay the agreed-upon amounts at once or over time. The downside with this is that some creditors will not agree to it. The benefit is that it, too, may not harm your credit a lot.
Bankruptcy
The other option your lawyer will explain is bankruptcy. You can use bankruptcy if you qualify to receive a discharge of your debt. If you can use Chapter 7, you can instantly receive forgiveness on any qualifying debt. This process is fast, and you can complete the case in around six or seven months. The downside is that it may harm your credit more than other options. If you are struggling financially, you may already have a compromised credit score, though, so filing for bankruptcy might not affect it a lot.
A debt relief lawyer can provide further details about all three programs and can help you select the right one. Would you like to get started with a plan that will help you pay off your debt? If so, call a debt relief lawyer today.