Getting out of debt doesn’t always have to involve filing for bankruptcy. There are options available that can help get someone out of the debt hold that they dug. Debt Relief Counseling in Lawrence, KS helps a debtor find ways to settle their debt load, whether it be negotiating with creditors or going to bankruptcy as a final solution.
Debt counseling begins with a meeting with a counselor in order to get a feel for the situation. Even though someone has debt, their situation is a unique one. No one has a financial profile that is exactly the same as another individual. It may be that the solutions used are common tactics, but how they are applied reflects the individual’s needs.
One way Debt Relief Counseling in Lawrence, KS can reduce outstanding debt is to go to the creditors directly and seek out a new way to repay what’s owed. It could be that the creditor is willing to negotiate a lower payment amount, interest rate or waive penalties that added to the outstanding balance. Another possibility is the creditor accepts a negotiated settlement for a lower lump sum that is to be paid in full over a set amount of time.
Another potential way out of debt is to engage in consolidation. This is the act of taking certain outstanding debts and turning them into a single loan. The loan is used to pay off specific debts, clearing them outright. The debtor then makes payments on the loan until it is retired. This takes many monthly payments and turns them into one, eliminating the need to keep up with different payment dates. A single payment has the potential to be lower than the multiple payments as well.
Finally, if none of the aforementioned options are going to work, there is always bankruptcy as a way out. It is considered to be a major and drastic step, but it does alleviate the pressure from the debt and creditors. It is an involved process that can be difficult to get through, but many feel is worth it in order to eliminate debt at once.