Debt can pile out quickly and can put you in a challenging financial position. It can be hard to get your financials under control. There are two options that can help you which are a debt management plan or bankruptcy.
A debt management plan sets up a payment schedule for you to repay your debts. You agree to deposit funds with your credit counseling agency each month. Your counselor with then send those funds directly to your creditors.
- A debt management plan won’t give you a negative impact on your credit score.
- Your credit counselor will try and negotiate with your creditors to get you lower interest and payments.
- Our credit counselors will help create a monthly budget for all of your expenses.
- After creditors see you are making regular payments they will stop collection activity.
- A debt management program does take time and commitment. You usually spent 3-5 years paying off your credit card debt but your debt will be paid in full.
Bankruptcy is a legal process that can eliminate or have you repay some of your debt under the federal bankruptcy court. There are 2 types of bankruptcy called chapter 7 and chapter 13.
- You could take a big hit on your credit score if you file for bankruptcy.
- It will remain on your credit report for up to 10 years which can cause problems with getting a loan or mortgage if you don’t have one already.
- For chapter 7 you must agree that the trustee can take and sell some of your property to pay back the debt.
- Filing bankruptcy will include filing fees, trustee’s fees, and attorney fees. These fees can add up in a short amount of time.
- Bankruptcy does allow you to get out of debt faster and forgives your debt.
If you want to know which option would work best for you contact us today. Credit Advisors Foundation is certified in both debt management plans and bankruptcy. Our counselors will give you judgment free advice and help you to the best of their ability.
Your credit card debt will only get worse so don’t wait and call today.