Did you know that the Federal Reserve Bank of NY’s recent report shows that Americans’ total household debt has increased? In fact, the “total debt balance is now $1.1 trillion higher than at the end of 2019.” Don’t rely on credit cards or loans to get by, you have options!
So, What Are My Options?
If you are struggling with debt, you are probably weighing your options to see what will work best for you. This is exactly what you should be doing. So, here are some options to deal with your debt.
1. Do Nothing:
While you can do nothing, it is important to keep in mind that your debt will continue to grow. The interest and penalties that continue to accrue can leave you owing more than the initial amount. Eventually, this will likely lead to lawsuits and judgments against you.
2. Negotiate:
An option that many people overlook is negotiating down your debt with the creditor. This is possible and takes time and patience on your part. Many creditors will work with you to come up with a better repayment plan or even take a lump sum payoff. If you decide to hire a professional to help you with this process, please do your research. Keep in mind that some creditors will not work with debt consolidation companies. Another thing to consider is that there are tax ramifications of settling your debts. Whatever debt your creditors do forgive can be considered taxable income to you. So, if you’re struggling to pay your taxes now, settling with your creditors might make that problem worse.
3. Borrow Money:
Be VERY careful with this option. Some people can borrow money to pay off debt. If you can do so, you may be able to create a manageable repayment plan or pay off the debt entirely in a lump sum. The problem with this step is that you may find yourself in a worse situation than you are already experiencing. Do your research and take your time before agreeing to anything. The last thing you want to do is create a bigger problem for yourself!
4. Bankruptcy
Bankruptcy can be your best bet to get out from overwhelming debt. Bankruptcy is a viable option to reduce or eliminate your debt entirely! Speak with a qualified bankruptcy attorney for information the best options for your current situation. Most attorneys offer free consultations and will provide you with other options to get your debt under control. Our office is no exception, contact our office today.
Need More Information?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.