Excessive debt is a problem that can affect anyone. It doesn’t matter how much money a person earns or how many credit cards they have in their wallet, if they owe more than they can repay without sacrificing necessities, they have a problem. There’s more than one way to deal with too much debt. Depending on their credit score, people in this situation may be able to solve their problems with new loans. Consolidating debt enables a person to pay a single bill every month and stretch the debt out over a longer period of time. Unfortunately, those who have already damaged their credit by paying bills late may not qualify for this option.
Credit counseling is another option for some people to reduce their debt. Professional counselors work with credit card companies to get clients lower interest rates and reduce fees. In exchange, clients typically have to close their credit card accounts. Counselors may also help their clients set up a budget that makes sense for their family. People who use credit counseling may be able to significantly reduce their debt while paying cash for everything they need. A bankruptcy lawyer in Silver Spring, MD might refer a client to credit counseling if their debt problem isn’t causing major problems in their life.
Although credit counseling is an effective way to reduce overall debt, it cannot eliminate wage garnishments or prevent repossession of homes or vehicles. Those who have been sued by creditors, are facing wage garnishment, or who are in jeopardy of losing their home or car, should talk to a bankruptcy lawyer in Silver Spring, MD about filing for bankruptcy protection. This is the only way to stop collections and, potentially, save assets. An attorney could help a client decide between chapter 7 and 13, based on their unique situation.
Addressing debt issues before they lead to foreclosure or garnishment could help avoid the long-term effects of bankruptcy. However, for those who are already dealing with these problems, visiting website and getting in touch with a bankruptcy lawyer in Silver Spring, MD may help prevent further damage and get a person back on the road to financial security.
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