If you’re like millions of Americans, you’ve felt the heavy anxiety of debt. The phone calls won’t stop, the bills keep coming and you’re one step away from changing your address and phone number. It’s all you can do to keep your head above water and make sure your household bills are paid and there are times when you’re even struggling to do that.
You aren’t alone. Millions of Americans are in the same boat, working hard to find a solution but winding up right back where they started: shorting some monthly expenses to pay others that require more “urgent” attention. It doesn’t have to continue to be like this.
In an effort get your arms around your debt, you may have considered reaching out to your creditors directly in the hopes of settling your debt for less than you actually owe so you can just be done with it. After all, they’re not totally unreasonable, right? Beyond all the phone calls and bureaucracy, it’s just a living, breathing person on the other end of that phone.
Before attempting to strike a deal with your creditors for a lesser amount, there are two things you need to know:
- Debt settlements can have a lasting negative impact on your credit.
- You may have other options, namely negotiating a lower monthly payment schedule.
Debt settlement is a good way to get rid of debt and it may be your best option. However, going the debt management route represents a genuine commitment to pay the entirety of your debt and shows up more favorably on your credit report. Settling may represent an inability to meet your financial obligations, which may cause future lenders to think twice about approving loans.
The bottom line is that before going the bankruptcy route, it’s important to know you have options. An experienced and qualified debt lawyer will explain your options and help you choose the best path for your family.