When you’re struggling with debt, nothing is more frustrating than not seeing your balances decrease. If you feel like you’re treading water, the problem may be that your interest rates and minimum payments are simply too high to make a dent in it.
It’s time to seek debt relief options when you’re struggling to pay unsecured debts and are unable to do so within five years. If the total of your unsecured debts is half or more of your gross income, it’s also time to start looking into other options.
How should you tackle debt?
To start with, negotiating is a great way to get lower interest rates or to be given a payoff offer that is less than what you owe. In some cases, if you’re willing to give a lender a lump sum upfront, they’ll be more likely to give you a lower payoff amount to make sure they get repaid.
If negotiating doesn’t work, you may want to enter a debt relief program. Be cautious, though, because many are not trustworthy, and that may end up costing you more than other options.
Is there a time when bankruptcy is the right choice?
Everyone’s situation is different, but if you have tried many other debt relief options to no avail, then it is time to consider bankruptcy. Your attorney will talk to you about the type or types of bankruptcy that you could qualify for so that you can make an educated decision about the best way out of debt based on your personal circumstances and financial needs.