What to Do When You Have Significant Credit Card Debt

In today’s world, credit cards go from being a readily-available convenience to overwhelming worry in the blink of an eye. If you find yourself buried in credit card debt, you are not alone. Rather than beat yourself up, take comfort in knowing there are several options out there. There are many companies offering debt relief services. Before you go that route, however, it’s important to understand all your options. In fact, in most cases, an experienced debt attorney can help you understand all of your options and regain control of your finances without hidden fees or surprises.

Debt consolidation is one route many people try to manage credit card debts. By packaging all of the debt into one loan and one monthly payment, the debt will feel more manageable. However, this option does not usually lower the total amount owed or the interest rate so that the debt can be paid off within a reasonable amount of time.

Filing for bankruptcy is another common option many people choose. There are many drawbacks to bankruptcy, making it an option to save as a last resort. Bankruptcy is a lengthy process, sometimes taking as long as five years to discharge the debt. In addition, bankruptcy has a devastating and lasting negative impact on your credit score.

Of course, if your debt situation is dire, chances are your credit score isn’t stellar anyway. In this case, bankruptcy can often provide a fresh start for you and your family. Depending on the type of bankruptcy protection you choose, you may even be able to keep your home, cars, etc.

Hiring a skilled attorney to dispute your credit card debt offers the best of both worlds from the first two options. An attorney experienced in this field will negotiate with creditors to lower the number of your debts before consolidating them into one payment per month that falls within your ability to pay. Under this option, you can be debt-free in as little as six months to a few years.

Many debt settlement companies make remarkable claims and false promises only to charge high fees, give poor advice resulting in your incurring penalties and fees on your debts, and further ruin your credit score. Debt settlement companies cannot give legal advice without a license to practice law. Tax and other legal issues can arise in the settlement of debts. Having an attorney to challenge debts and guide you through any legal hurdles is the wise and responsible choice of ending the debt cycle and achieving true peace of mind.

The Law Office of Robert Jacovetti is here to do just that – contact us for more information.

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