Various options exist that can help you resolve your debt overload. 

These include:

• Debt consolidation
• Debt settlement
• Chapter 7 or Chapter 13 bankruptcy

Debt consolidation involves combining all of your debt into one monthly payment under a new loan or credit card. This may be a good solution if the interest rate of your consolidation loan or card is lower than what you are currently paying on your other debts. Many credit card companies offer balance transfer cards with a promotional period of zero percent. However, you will need a good credit score to qualify. You may also qualify for a fixed-rate consolidation loan through various lenders. 

Debt settlement involves stopping your payments to creditors and putting your money into a separate savings account managed by the debt settlement company. This company then negotiates with your creditors after enough funds have accumulated to make a lump sum settlement offer. However, while your funds are accumulating, you will still be accruing penalties and your nonpayment may even lead to legal action. Unfortunately, the debt settlement industry is notorious for scamming people and is not recommended. National consumer agencies such as the Federal Trade Commission and the Consumer Financial Protection Bureau have urged consumers to exercise extreme caution when considering this option. 

You can also try negotiating with your creditors on your own. They may have hardship programs that will provide options. You may also be able to negotiate for a lower interest rate or reduced payments and a halt on penalties. 

Finally, bankruptcy is a good solution for many people. It has been established by the government as a viable and accepted way to eliminate or reduce runaway debt and give you a fresh start. It can immediately end the nightmare of creditor harassment, stop wage garnishment, repossessions, and foreclosures. If you don’t qualify for or want to pursue the liquidation form of bankruptcy through a Chapter 7, you have the option of reorganizing your debt into one monthly payment through a Chapter 13.  Our firm can educate you on the process, determine your qualifications, and help you navigate through all the steps.