Top 4 Ways to Get Out Of Debt

Being in debt is a very stressful experience. There are times where you might find yourself in a situation where you do not have the income to pay your debts, nor non-exempt assets that can be sold off to settle part of your debt. In these circumstances, we advise that you consult a bankruptcy attorney from the law office of Scott R. Schneider.

With several bankruptcy substitutes that you can use to settle your debt, filing for bankruptcy might seem like overkill for you. However, before you make your final decision, let’s explore the different options you have for debt settlement.

1. Negotiate With Your Creditors for a Debt Settlement Deal

If you do not want to file for bankruptcy, the only option is to settle your debt. When you are buried under a mountain of student loans, credit card debt, personal loans, mortgages, car loans, etc., you might find yourself prioritizing paying one creditor over the other. In extreme cases, you might even find it difficult to pay back one creditor.

Rather than defaulting on your debt, you could negotiate with your creditors to change your repayment terms. You could work out a deal that takes into consideration your financial situation. However, be prepared for your creditor to refuse to negotiate with you.

They know they have legal options they can pursue to get you to pay them as much as you can. Some creditors would rather recover what they can, rather than bet on an unknown future. 

2. Consider Debt Consolidation

Debt consolidation provides you with the option to consolidate your consumer debt and liabilities into a single debt and take out one single loan to pay it all off. So, if you have credit card debt, student loans, and any other liability, you can borrow from your bank or credit union and ask them to help you pay off your current debts.

While debt consolidation does not clear your debt, it helps you reduce the number of creditors you will deal with and improves your repayment terms and schedule. However, you should be aware that your chances of being provided with a debt consolidation plan depend on whether your lender can trust you to pay on time.

3. Selling Your Assets

Most people under immense pressure to pay off their debts end up selling some, if not all, of their assets. Some end up paying off their debts completely. In contrast, a good number of people end up only paying off a portion of their debt. 

Selling your assets and paying off a certain portion of your debt can help you negotiate a better debt repayment structure. You can also buy yourself more time, which you can use to come up with a better plan of how you will manage to pay off the remaining debt.

4. Enrolling With a Credit Counseling Agency

Even before you file for bankruptcy, you will be required to first work with a credit counseling agency. The main role of credit counseling agencies is to help debtors negotiate with their creditors for a more suitable loan repayment deal.

 Many financial experts will advise you to contact a credit counseling agency, especially if your negotiation skills are not good. And that is because credit counselors can help negotiate for you lower repayment terms and lower interest rates.

The second role of credit counseling agencies is to help you create a debt management plan meant to help you come up with a payment plan you can afford.

If you have been struggling to pay your bills and are worried about the future, the law office of Scott R. Schneider can help. They specialize in bankruptcy law for individuals with debt issues who want relief from their financial burdens through a Chapter 7 Bankruptcy filing or other type of bankruptcy protection. They offer free consultations so contact them today at +1-516-262-6493 if you would like our expert advice on how to get out of debt and start fresh again financially!

The  Law Offices of Scott R. Schneider Serves the New York communities of Hicksville, Jericho, New Cassel, Bethpage, Levittown, Plainview, Westbury, East Meadow, Syosset, North Wantagh, North Bellmore, South Farmingdale, North Merrick, North Massapequa, Uniondale, Wantagh.