Carrying large amounts of debt can ruin your life. If you fall behind in payments, collection agencies call your home, your credit score falls and you may even lose some of your most valuable assets. In many cases, people who owe money believe that their only option is to file bankruptcy. However, if you don’t want to file bankruptcy, there are other strategies you can use to reduce or eliminate your debt.
Debt reduction occurs when a creditor willingly reduces your balance. For example, if a creditor recognizes that you won’t be able to pay the full amount you owe, he may be willing to accept a smaller amount instead. If the creditor agrees to this arrangement, you will pay him the specified amount, and he will forgive the remainder of the balance. This allows you to eliminate some of your debts without surrendering your assets or paying more than you can afford.
Debt consolidation is most beneficial if you owe money to multiple creditors who are charging high interest rates. The process typically requires you to obtain a large loan with a lower interest rate and then using the proceeds to pay off your existing debts. Because the new loan will carry a more affordable interest rate, your monthly payments will be lower, and you will be able to pay off all of your debt in a shorter amount of time.
Hire a Lawyer
Creditors can be intimidating, and negotiating with them on your own may be more than you can handle. For this reason, it’s wise to consult a qualified Debt Reduction Lawyer. An attorney with experience in this area of the law can ensure that you find the best possible solutions for your debt problems, which may include debt reduction, debt consolidation or a combination of these strategies.
If you owe debt and you are struggling to make your payments, don’t hesitate. Contact the Law Office of Ivan Raevski today. Attorney Ivan Raevski is skilled and experienced in debt reduction and consolidation, and he can help you develop a plan that’s best for you. Call today to schedule a consultation.