Debt Relief Attorney Houston TX
Debt Relief Options for Credit Cards
Some debts can get too big for you to handle alone. Using budgeting techniques and tightening your belt may not be enough to solve the problem. If the time comes that you can no longer manage your debt, you can find options for credit card debt relief.
The goal of all debt relief options is to make your monthly payments more manageable. Consider all of your options carefully or you can consult a lawyer before you make your choice.
- Interest Rate Negotiation
Interest rate negotiation is the first option you can consider for debt relief. This option helps you negotiate with individual creditors for even lower interest. In a few cases, the simple reduction of the interest rate on credit card accounts can provide relief. Directly negotiating with individual creditors you will need to have a good credit history or a strong repayment rating for them to know if interest rates can be reduced.
- Debt Management Program
One of the major problems that people experience with the above-mentioned options is that their debts have already had a negative effect on their credit history. Every time you are unable to pay your bills, pay less than the minimum, or pay late, your credit history is at stake. If this happens to you, you can enroll yourself in a nonprofit debt management program. Enrolling in a program may not affect your credit score negatively. Thus, it could improve your credit score. You can enroll via nonprofit credit counseling agencies and I can assist in identifying such nonprofit agencies. They will present new terms to your creditors and create a plan that fits your budget. You may only need to pay once a month and they disburse the new payments to the creditors for you.
- Debt Settlement
There are also cases where debt management programs may not be effective. If you reach the point where you can not pay back all your debts, it’s better to consider debt settlement, which again, I could assist you. There are two options for you: the formal consumer proposal or the standard debt settlement agreement. You may be allowed to settle your debt for a lesser amount with both options. Debt settlement may not affect your credit score and is possibly a better alternative than bankruptcy.