If you have debt and you have recently experienced a financial downturn, it’s important to create a solution that can help you get back on track. Playing catch-up with serious debt can be difficult and it can feel like a pointless pursuit when there isn’t enough money for you to regularly make payments. If you want to avoid bankruptcy, there are some methods that you can use to reduce your debt before choosing to liquidate your assets. Here are some strategies that you can use to reduce your debt!
Using a consolidation loan is an excellent way that you can put all of your debts into a single loan to reduce the interest rate on your monthly payments. Combining your debts with a consolidation loan and then paying the loan under a lower interest rate can be an excellent way to make your payments on time and incur less interest in the process.
Direct Negotiation With Your Creditors
If you only have $250 to pay off a monthly bill of $450, a creditor may be willing to work with you on a month-to-month basis. Getting out ahead of an unpaid bill can be important. Speaking to a creditor about a payment arrangement for a few months could help you to avoid extra late charges or an increase in your interest rate.
Although it can be difficult, setting automatic bill payments and garnishing your own paycheck to make sure that you stick to your repayment plan can be a great way to lower your debt. You can repeat this process for each individual payment you owe until you are completely debt free.
If you need assistance with debt consolidation or you would like to consider bankruptcy as an option contact our attorneys today!
This post was written by Trey Wright, one of the best Bankruptcy Lawyers in Tallahassee Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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