Dealing with crushing debt can be overwhelmingly stressful. Exploring the multitude of legal options available for escaping debt may help you overcome debt. There are several legal strategies for paying off debt effectively to save you time and worry. Consider asking a Chattanooga bankruptcy attorney about legal options related to bankruptcy if you feel like bankruptcy could be the right step for escaping debt.
Legal Options for Escaping Debt
Not everyone realizes how many legal options for escaping debt there are. There are also several protections in place to prevent creditors from harassing you with unfair debt collection practices. Debt collectors and creditors can inform you of the money you owe but they cannot threaten, add interest to your original debt, nor can they make false claims against you.
There are several legal options for escaping debt like negotiating with creditors a lower payment or payment plan. After a certain amount of time, certain debts will enter a period where the creditor can no longer sue you. In other words, you may not have to pay expired debts.
Other options for paying debt include credit counseling agencies, debt management plans, and debt settlement programs. However, some of these are risky due to scams. There are also debt consolidation loans. Filing for bankruptcy can erase a fair amount of debt in some cases but many people reserve bankruptcy as a last resort.
Strategies for Escaping Debt
There are also several legal strategies for escaping debt that you can do on your own. Using early interventions like these can make a massive difference in how fast you escape current debt and prevent future debt from occurring. The first step is to assess what got you into debt to avoid similar struggles in the future.
List out what caused your debt, whether this be credit cards, loans, spending money, or unexpected expenses. Next, make a budget by adding up your usual monthly expenses and subtracting this from your usual monthly income. Organize this by listing your necessary expenses like bills and unnecessary monthly expenses like entertainment.
Use budgeting to decide what monthly costs to cut and to make a plan for putting more income towards debt. Start making extra payments to debt. There are two ways to use a debt action plan to escape debt faster.
The debt snowball method involves paying off the smallest debts first. List your debts in order from smallest debt to highest debt. Continue minimal payments on all debts but make extra payments to the lowest debts. For the debt avalanche method, you will continue minimal debt payments but put extra payments to the debt with the highest interest rate. Choosing the right method for you depends on your financial situation and goals.
Call Tom Bible Law Today
You may not have to deal with debt for much longer. Feel free to contact us today at Tom Bible Law by dialing (423) 424-3116 for a consultation about your financial options for escaping debt. Our experienced team of Tennessee bankruptcy lawyers is prepared to help you assess all your options related to bankruptcy. We serve clients in the Tennessee cities of Chattanooga and Tullahoma.