Making the wrong financial decisions early on as an adult can lead to problems later on, such as the accumulation of a substantial amount of debts. The bad part about having debts is not that creditors can take you to court and sue for their money, but that they will usually continuously call until then. Debt collectors are known for calling throughout all hours of the day, which can lead to someone not wanting to leave their phone turned on. Getting out of such a financial hole is not an easy task for most people due to various circumstances that can develop in life. If you have not been successful with getting your debt situation back on track and need some guidance, continue reading this article for tips that can help.
Maybe Debt Consolidation Is the Solution
If you were to combine all of your debts into one, it might actually make them seem easier to pay off. Basically, you would need to contact a debt consolidation company for assistance to make things possible. The consolidation company can possibly get the payment down to a monthly sum that is easy for you to keep up with based on your income. If you have a bank account, you can make sure the payment is automatically taken out so you won't have to worry about accidentally missing payments. Keep in mind that debt consolidation will also help you to slowly rebuild you credit score.
Chapter 7 Bankruptcy Can Give You Freedom
If you now that it is not possible for the owed debts to be paid off any time soon, filing for chapter 7 bankruptcy might be the best path to take. Get in touch with a lawyer who deals with bankruptcy cases and he or she will be helpful at determining if you want to move forward with filing. For instance, the lawyer might inquire about your debts, income, household size, and number of dependents to determine if filing for bankruptcy is in your best interest or not. He or she will also explain how filing can affect your credit score and ability to get future loans. If you decide to file, he or she will help you get started and through the process.
Attempt Disputing Some of Your Debts
Sometimes debts will remain on a credit report when they shouldn't be there, which negatively affects the score. There are also sometimes debts on a report that are the result of someone using your identity to obtain various things. You can pull your credit report and dispute anything on it that doesn't belong. Some of the debt collectors that have been calling might stop after the disputes are successful.
To learn more, contact a bankruptcy lawyer.