Having debt can really be a scary thing. By restructuring your debt you are taking a big step in the right direction, going one step further to maintaining your assets and improving your credit score. Debt restructuring, put in simpler terms, is when debtor and creditor agree on an amount that the borrower must pay back. When you decided to restructure your debt, you are able to negotiate for better rates and lower overall amounts and essentially condense all of them into one monthly payment. This makes it so much simpler than having to juggle those massive payments each month only to find yourself in the same place the following month. You have a few options to choose from once you have decided that restructuring is the right solution for you. Let’s get into it.
Debt management companies
When using a debt management company, they typically develop a plan to restructure your debt in a way that will maintain your credit the best. Debt settlement companies renegotiate, settle, or can change the terms of your debt to your creditors or debt collectors. This can be done by either a nonprofit credit counseling agency or lawyer. Both charge a fee for their services that is normally factored into the payment you pay to them each month so you don’t have to worry about another bill being added to your soon to be solved debt problems. Navicore Solutions and National foundation of credit counseling are some of the top nonprofit credit counseling agencies out there.
It is such a heavy burden that is lifted from off your shoulder when you give your debt to a debt management company. Knowing that they are qualified to negotiate for the best solution available and have done it on multiple other occasions is so comforting and lets you be sure you are in good hands.
Chapter 13 bankruptcy
Typically when you decide to file for bankruptcy to restructure your debt, you will have to get a lawyer to help you through the process. They know the ins and outs of the process and can help you get the best outcome available. It can be intimidating to have to go through it on your own. Having a lawyer will ensure you that someone who is knowledgeable and familiar with the process will help you get the best result possible. The bankruptcy route to restructuring your debt can be a little more on the pricey side. Most of the time you have to pay for your lawyer out of pocket and you will also be responsible for the court fees that will be involved. But considering that you will potentially have a significant amount of debt relived from you, it may be more affordable than you think.
Having debt a significant amount of debt is not the best feeling in the world. It’s easy to feel like you are drowning. Debt restructuring can be a great tool to help you catch your breath. Before deciding on a debt Management Company or lawyer, be sure to do your research. Choosing the right person to be your representative and negotiator is a big deal as they will be crucial in helping you get out of debt once and for all. It will take time to get there, but with the right help and enough dedication you will be well on your way to being debt free.