Managing Your Debt
Sometimes, debt can become overwhelming. When you accrue too much of it, you may feel in over your head and completely unable to manage it. However, you should always remember that there are options available that will help you take hold of your monetary situation and reduce your debt in a steady manner. By consolidating your debts, enlisting the help of a debt management program, or even filing for bankruptcy, you can enter a positive financial standing.
Debt Consolidation and Debt Management
Debt consolidation is a way that you can turn all of your debts into one lump payment that you must make each month. This approach offers both the ease of simplicity as well as, many times, a lower overall interest rate. Not only that, but debt consolidation can also lower your monthly payments by extending the length of the payback period.
Debt management companies offer services and benefits that are very similar to debt consolidation. Instead of consolidating your loans into a single one that you pay directly every month, these companies collect a single payment from you and distribute it to your various creditors. They often negotiate lower monthly payments and lower interest rates, as well.
Filing for Bankruptcy
Finally, you can file for bankruptcy as a method of debt relief. Under Chapter 7 bankruptcy, your estate is divided into exempt and non-exempt assets, and the non-exempt items are sold to pay off your debts. Under Chapter 13, your debt repayment plan is completely restructured in order to make your monthly payments reasonable and easily met. Chapter 13 also offers filers the protection of an automatic stay, which halts foreclosure proceedings, repossessions, and creditor harassment.
If you would like to learn more about the debt management options available to you, contact Birmingham bankruptcy lawyer Paula Greenway today by calling (205) 324-4000.