When people are dealing with excessive amounts of debt, it can quickly become unmanageable, but there are many ways that individuals can rectify the situation. Perhaps one of the most extreme but effective methods is filing for bankruptcy. This is a debt relief option that many people choose. However, when it comes to comprehensive Debt Relief in Lawrence KS, there are other options to choose from.
Credit Counseling is the First Step
In some cases, credit counseling is all that will be needed to help people manage their money better and pay off excessive amounts of debt without having to file for bankruptcy. This should definitely be everyone’s first option when they find themselves struggling to repay the debt that they have amassed.
Repaying Debt in a Structured Plan
Another option is with a debt management program. This, in essence, is a structured repayment plan initiated by a credit counseling service where a specific amount of money is paid every month to pay down debt. This plan typically includes consumers forgoing the use of credit cards and a credit counseling service negotiating on their client’s behalf to lower interest rates or to restructure debt repayment with individual creditors.
A Debt Consolidation Loan
The other option in Debt Relief in Lawrence KS is to opt for a debt consolidation loan. These can be a bit problematic because people that are in a situation where they’re considering bankruptcy or credit counseling may not have the credit score needed to get approved for a debt consolidation loan.
However, if people are proactive and begin to see that there could be a problem with debt before it exists, this may be a good way to cut any debt issues off at the pass, pay down debt and actually save money on exorbitant interest rates.
You may be in a position where you are considering bankruptcy, and, in some cases, that may be the only option. However, there are other things to consider and some people benefit greatly from financial counseling, entering into a debt management program or seeking out a debt consolidation.
In order for you to determine which option is right for you, it’s a good idea to speak with an attorney to see what options are available to you. If you’d like to know more about these and other debt relief methods you may want to Click here.