What Options Are There for Debt Relief?

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debt relief

There’s no question that too much debt is a significant problem in the United States today. The emergence of the global pandemic in 2020 certainly didn’t help. Many people lost their jobs and struggled to keep the lights on and put food on the table for their families. In many cases, this world crisis caused people to incur even more debt than they previously had. 

In this article, we are going to discuss the various options available to you in order to get out of debt.  If you’re looking for ways to manage your debt more efficiently and you are searching for qualified debt relief lawyers in Stuart, Fl, call Crary Buchanan today and we will explain your options. We can help you come up with a plan to get out of debt as quickly as possible.  

Ways To Get Out of Debt

There are a number of ways to limit or even eliminate your debt.  Let’s cover some of them here. 

1. Debt Consolidation

If you have many different types of debt, it can be helpful in some circumstances to consolidate all of those debts into one monthly payment. Generally speaking, when a person consolidates their debt, they are essentially taking on a newer and more manageable debt in order to pay their current one. This can be helpful if the new loan is at a lower interest rate. Ideally, the lower interest rate means you will ultimately pay back less money, and the convenience of only having one monthly payment can often mean fewer late payments. Therefore, you will pay less in late payment penalties. Those late fees can add up, so one monthly payment and fewer late fees can certainly be helpful.

2. Budgeting

The FTC recommends practical budgeting techniques and plans. Determine how much money you make and how much money you spend. In order to know where you can make changes, it’s crucial to figure out where every last dollar is going. Even the small purchases add up, so make sure you have a good way to keep track of every dollar you spend.

3. Debt Settlement

Debt settlement is a negotiation with your creditors to reduce or forgive a portion of your debt. If it has gotten to the point that you owe so much money and it just seems insurmountable, debt settlement might be a good option for you. The most important thing you can do is to enter into negotiations with creditors before they file any lawsuits against you and prior to them sending your debt to a collection agency, which can have a severe negative impact on your credit score and your ability to borrow money in the future. 

The best way to negotiate with creditors is to have an experienced attorney do it for you. A lawyer can work out a payment plan with your creditors, and they can even get the creditors to agree to accept a smaller amount of money paid in exchange for wiping away the rest of your debt. This is a win-win: the creditor gets some of the money you owe them, and you are able to pay a smaller amount and start over with a clean slate. 

Getting Help from a Lawyer Rather than a Debt Relief Company

Debt relief scams are becoming more prevalent, making it even more important that you find an attorney who can help, rather than a debt relief company. If you end up being scammed by a debt relief company, you can wind up being even further in debt and losing substantial amounts of money. 

If you are working with a debt relief company and they make you promises or guarantees to settle all of your debt for half of what you owe, you should be very skeptical and possibly avoid that company. Additionally, there are specific rules that debt relief companies must follow. The FTC has prohibited these companies from collecting a fee from you in advance of settling any of your debts, so if a company tries to do this, you should absolutely avoid working with them.

Other Important Things to Note About Debt Settlement

One of the most significant downsides of debt settlement is that any amount of debt that a creditor forgives is viewed as income by the IRS. This means you will be taxed on that money as if you had actually earned it. This is problematic because most people struggling with debt will not have the money to pay these taxes to the IRS. 

Another downside is the possibility that your credit will be damaged in the process of debt settlement. Damaged credit can make it harder and more expensive to borrow money. It can also make it more difficult to get approved for a place to live or to even get utility services without paying a deposit. However, if you have no other options and just cannot get out of debt otherwise, this might be something you need to deal with. Over time, you can work to improve your credit score as you become free and clear of your debts.

Bankruptcy

If you feel like you’re drowning in debt and you’ve explored all of your other available options, bankruptcy might feel like the only thing left to do. While filing for bankruptcy can be helpful in some circumstances, it can also have many negative consequences, so it’s important to make sure you’ve explored all of your options and the possibilities available to you. Before you decide that bankruptcy is the final choice, reach out to experienced debt relief lawyers in Stuart, Fl.

Let the Professionals at Crary Buchanan Help You

It can be challenging to determine which choice is best for you. Being in debt is scary and sharing your struggles can make you feel very vulnerable and even foolish, but you have nothing to be ashamed of. The most important thing is to get your debt under control. The decisions you make are very personal ones, and the best option for one person might not be a good option for another. Let us help you. At Crary Buchanan, we have experienced and compassionate attorneys who can help you figure out the best plan of action. 

Crary Buchanan is a general practice law firm dedicated to providing quality legal services in the state of Florida. Our lawyers have significant legal experience in virtually every major area of law, and most of our associates are Board Certified by the Florida Bar in their specific areas of expertise. This extensive legal experience, coupled with our years of service and dedication to our community, means that Crary Buchanan attorneys are miles above the competition. 

If you have more questions or you’re looking for debt relief lawyers in Stuart, FL, contact us at 772-287-2600. You can also easily schedule a fast and free consultation online with our simple-to-use contact form. We have successfully resolved hundreds of negotiations involving debt relief and forgiveness over the years and can boast of many satisfied clients. You can always depend on Crary Buchanan for our honesty, trustworthiness, hard work, and experience. Call us today.  

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not decide whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed, nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.