Understanding Your Options For Debt Relief

Sometimes life throws more than we bargained for at us, and we get stuck between a rock and a hard place. Finances can make or break a person. At times it seems like there is no way to make money without losing it, and the majority of the time, we end up with piles of debt that seemingly swallow us whole. 

Fortunately, we live in an era where virtually anything is possible, and there is hope when facing these types of financial situations. There are recovery options if you have been engulfed by debt that could drastically improve the uphill battle that you are fighting.

Debt Settlement

The first option is debt settlement. Debt settlement can help you get out of debt at a cost less than you owe. In order for debt settlement to work, you have to be in default. If you are no longer making monthly payments towards your debt, then creditors face losing their money as well. 

Debt settlement works as a sort of compromise so that you get debt relief, while your creditors still get repaid. However, debt settlements can potentially affect your credit score drastically, so it is essential to understand the arrangement’s implications.

Debt Consolidation

Another method used to repay debts is that of debt consolidation. Debt consolidation is essentially the process of taking out a loan to pay back the debt that you have. This can give you more time to pay back your creditors and add relief to your wallet. 

However, this form of debt repayment can be a big gamble. If you are struggling to repay the debt you already have, taking out another loan may be a problematic decision. You could very well incur more debt down the road due to interest rates and loan terms, leaving you in no better shape financially.  

Choosing To File For Bankruptcy

Finally, when all else fails, you can file bankruptcy for relief from the burden of debt. Bankruptcy can offer a brand new start to people who have found themselves consumed by backed dues and overwhelming bills. 

Filling bankruptcy puts a halt on most collection actions giving you some room to breathe. Bankruptcy can halt evictions, collection calls, foreclosure, and potentially even lawsuits. While bankruptcy may seem like the perfect solution, there are many details that you should be aware of before you file.

Making Informed Decisions

Hiring an attorney who specializes in financial restoration options such as bankruptcy is the best way to make sure that you are aware of your options and understand how they may affect your situation. Hedtke Law Group can provide consultation to you on your personal financial options to relive the heavy burden of debt that you are experiencing.  

You can find relief from debt, let Hedtke Law Group help you ensure that your financial future is bright, call today to find out how we can help.