Two things you want to do to escape credit card debt is to seek better payment strategies and avoid debt relief scams. Debt relief scams will not only worsen your financial situation but could quickly drain your finances. There are several debt payment strategies like debt snowball, debt consolidation, and bankruptcy that can help you escape overwhelming debt. Bankruptcy might be the last resort, but if you find yourself falling into this, be sure to contact a Tennessee bankruptcy lawyer who can help you.
Use a Payment Strategy
Payment strategies for debt can help relieve you of the credit card debt you owe faster. Some people choose the debt snowball strategy, that is, paying off your lowest debt balances first. This has been known to motivate people to continue paying off other debts once their lower debts reach a balance of zero. The opposite approach is to pay off your highest debts first in what is called the avalanche approach.
You can also try debt consolidation strategies like transferring your debts to a credit card with zero percent interest or seeking personal loans to pay off large chunks of debt. Transferring to another credit card may seem insane in this situation, but if you can find a credit card with a zero percent interest rate, this can save you money in the long run.
When you have exhausted all your financial options to escape debt, you can seek help from a credit counselor to create a debt management plan. A counselor will be able to negotiate with your creditors with leverage that you may not have. As a last resort, you can file for Chapter 7 bankruptcy to remove insecure debt or Chapter 13 bankruptcy to form a debt payment plan that gives you more time.
Avoid Debt Relief Scammers
In your search for debt relief, be wary of debt relief scammers who will take advantage of your desperate financial situation. They will say anything you want to hear to take your money from you with no returns. Avoiding these scams is vital for protecting your finances and preventing a financial collapse.
There are several signs of debt relief scammers that can help you make smart decisions. For one, debt relief scammers will almost always require you to pay them before they do anything to relieve your debt problem. Scammers will also tell you to not talk with your creditors at all, will not send you any information about them until you give them your credit card information, and will promise to eliminate your debt by a certain date.
Things that are too good to be true are probably a scam.
Bankruptcy Lawyers in Chattanooga, TN
Escaping massive debt can be one of the most stressful things to endure. You do not have to go through this battle alone. Talk to our lawyers in Chattanooga, Tennessee, and North Georgia for assistance with bankruptcy and financial struggles.
All you have to do is contact Tom Bible Law to reach a Bankruptcy attorney in Tennessee at (423) 424-3116 for a free consultation today. Our bankruptcy attorneys are located in Chattanooga, Kingsport, and Tullahoma.