It’s Not Always About Bankruptcy

Photo credit: © Alan Crosthwaite | Dreamstime Stock Photos

Is the Clock Running on Your Debts? Consider Your Options. Photo Credit: © Alan Crosthwaite | Dreamstime Stock Photos

Debt Relief, Debt Management, and Debt Consolidation Plans May Help, Too

Bankruptcy is not the answer for everyone with financial troubles. Other options for debt relief also can meet special needs. People burdened by high-interest credit cards, job loss, or disability may find relief without bankruptcy, through debt consolidation, credit counseling and/or debt settlement.

The goal of debt consolidation is to help consumers pay down debts with a single, more manageable structured monthly payment plan, generally handled by a credit-counseling agency. Daley Law has been designated a Federal Debt Relief Agency and can contact and negotiate debt-relief plans, including settlements or monthly payouts, with creditors. Depending on a debtor’s situation, it may be possible to arrange lower interest rates and/or get creditors to waive costly late fees and penalties as part of a debt-management plan.

A debt-management plan will structure a single payment to the debt-relief agency, which then will distribute a pre-arranged amount to various creditors in the debt-management plan. Ideally, with an affordable repayment plan in place, people are able to direct more available funds to lower the principal balance on their credit cards instead of making interest-only payments.

Debt settlement, another option, may enable a person to substantially reduce the money owed to a creditor, based on individual circumstances, and pending the creditor’s approval.

The best way to manage bills is to take care with spending. Sitting down and reviewing how you actually spend every dollar is an important exercise in debt management. Learning to budget effectively is a good first step and will help ensure that you get and stay on the road to financial recovery.

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