Worthwhile Alternatives To Bankruptcy
Due to recent financial climates around the world, millions of consumers are feeling the pressure of financial hardships. Due to lack of work and lack of savings several consumers had to live for years on credit cards racking debt up to the ceiling. Now, these consumers have a new job, but there’s still a major problem. Even though they have a job, they have a mountain of debt haunting them making it nearly impossible to survive financially.
Often times, the first instinct people may have is to go to a search engine and type in something like “League City Bankruptcy Lawyer” or “South Houston Bankruptcy Lawyer” and look into filing a bankruptcy. However, many people forget that there are other alternatives, or worse, they know about the alternatives and think that their situation is too bad for these alternatives to help, so they don’t give them a shot. The bottom line is, debt management programs are designed to keep consumers from filing for bankruptcy. They’re designed with the primary focus on consumers facing severe financial hardships. That being said, they may provide more relief than you think. Here are a few options that you should look into before filing for bankruptcy…
Option #1: Financial Hardship Programs: Lenders don’t want you to file bankruptcy. If you do, they lose every penny that you owe them. Therefore, most lenders have created financial hardship programs as a result of the recent financial recession. These programs help consumers by reducing interest rates to dramatically low numbers, often times 0%. Also, the lender will set up a constant payment plan so that the lower payments as a result of the low interest rates pay off the debt within 60 months. These programs are great for people who make it, but just barely.
Option #2: Debt Consolidation: There are various forms of debt consolidation loans, but there are really on two different types of debt consolidation. The first is a consolidation loan. In these cases, a lender loans the consumer enough money to pay off their debts at incredibly low rates. The other form of consolidation is a negotiation and controlled consolidation. This is when a consolidation company is given power of attorney and negotiates lower interest rates on your behalf based on your financial hardship, no matter if they offer hardship programs or not. You make one payment to the debt consolidation company and the payment is dispersed to the lenders by your consolidation company.
These are only two options. So, if these don’t work for you, there’s a couple more you can try. Debt settlement is a controversial form of debt relief whereby a company negotiates the principle balance of your debts with your lenders using an “Either accept this or get nothing” tactic over the term of months or years. Also, for mortgage debts, you can look into loan modifications. If all else fails and nothing works, then and only then, you should go to your favorite search bar and type in something to the effect of “Kingwood Bankruptcy Lawyer”.
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Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at Consumerlaw@busby-lee.com.