When you’re struggling with debt, it affects more than your financial well-being. Falling behind on your monthly obligations and dealing with creditor calls can also have a detrimental effect on your physical, mental, and emotional health, which is why it’s important to understand your debt relief options. Below is an overview of different options that may be available to you, depending on your circumstances.
Refinance Your Mortgage
If interest rates are presently low, you could consider refinancing your mortgage to obtain a more affordable payment schedule. Other options include reducing your present monthly payments or applying for a government modification program that allows you to temporarily suspend them until you’re on stronger ground financially.
Negotiate With Your Credit Card Company
If your credit card balances are so high that you’re barely covering the interest payments, you may be able to negotiate a lower interest rate, a repayment arrangement that you can afford, or a similar debt settlement agreement. While it’s not guaranteed, your credit card providers may be willing to work with you, especially if the alternative is a Chapter 7 bankruptcy that results in the debt not being paid at all.
Approach Your Student Loan Provider
Millions of Americans are struggling with student loan debt. If you are one of them, approach your lender to see if they will agree to a payment plan that meets your budget. Your options will depend on your loan type, but it may be worthwhile reaching out.
Apply For a Debt Consolidation Loan
Debt consolidation loans combine all your debt into a single monthly payment, ideally at a lower interest rate than you’re currently paying, although the rate you receive will generally depend on your credit score and the collateral you can offer.
File for Bankruptcy
If your debts are so high that you can no longer make the minimum payments and/or your creditors are taking collection actions against you (e.g., foreclosure, collection lawsuit), bankruptcy may be your best option for debt relief. You can file for Chapter 7, which will eliminate unsecured debt, or Chapter 13, which allows you to repay some or all of your obligations over a three to five-year period. Consulting with an attorney can help you decide if bankruptcy is appropriate for your situation.
Contact an Oklahoma Bankruptcy Attorney
Being in debt is stressful, but you have options that can bring it under control or give you a fresh start. At the Law Offices of B. David Sisson, we are committed to helping people in your situation overcome their financial challenges and enjoy solvency once again. For more information or to schedule a consultation with Attorney David Sisson, please contact us.