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Debt is sometimes like quicksand—the harder you struggle, the more you get pulled under. If you’re not careful, there may come a time when your health, career, and relationship are put on the line. When you’re already finding it difficult to make payments, it’s time to evaluate your financial condition and consider debt relief options. Here’s what you should and shouldn’t do as you try to head towards financial freedom.

Do:

File for bankruptcy.

Before you start selling assets or liquidating your 401k to pay off your debts, consider filing for bankruptcy. This debt relief option gives you a chance at a fresh start in your financial life by wiping out particular obligations like credit card debts, utility payments, and medical bills. It may also be the best solution when you are facing foreclosure, you have a large debt, or your creditors are suing you. Depending on your situation, you can opt to file a Chapter 7, or a Chapter 13 bankruptcy. It’s a wise decision to hire a bankruptcy attorney who will ensure that you file your paperwork accurately and completely.

Speak with your creditors.

debt relief optionsYou may not know this, but you can request for a lower interest rate from your credit card company. Although they might say no, they will most likely offer you internal hardship programs that you can take advantage of instead. This is more agreeable for them compared with employing collection actions that will cost them more.

Don’t:

Work with a debt relief company without doing your research.

When you’re trying to recover from debt, the last thing you need is to be scammed by a company offering debt relief options. Carefully weigh the pros and cons of signing up for their services, and confirm if paying the debt on your own isn’t the better alternative. You can contact your local consumer protection agency and state attorney general if you want to verify if there are any complaints on file for a particular company.

Get a new credit card.

Remember that you are trying to get rid of your debt. Opening up a new credit card means you have to make additional minimum monthly payments. Think about how you ended up where you are now in the first place. For the moment, try your best to stick to debit cards, checks, or cash when paying for your purchases.

 

Explore your debt relief options with a reliable bankruptcy attorney from the Law Office of James B. Mallory III in Statesville, NC. He will not only offer a personalized solution to deal with your debt issues, but he will also help you get your life your track by rebuilding your credit. Call his office today at (704) 872-1911 to schedule an appointment or visit his website for more information.

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