If you’re not sure whether a debt settlement is right for you, it’s best to explore your other debt alternatives first. Our seasoned debt settlement attorney and bankruptcy lawyer in Vancouver, WA can evaluate your financial situation and help you determine the best debt relief option for you.
1. Make your minimum monthly payments.
You can continue making your monthly debt payments and eventually pay off your debt. However, only making the minimum payments will cost you by far the most in interest charges over the longest time.
2. Get a debt management plan.
In a debt management program, you make a single monthly payment to a credit counseling agency that will repay your creditors, ideally with a reduced interest rate to pay off your debt faster. However, you’ll likely still end up paying the full amount of the principal plus interest accrued.
Debt management plans of this type require three to five years to complete, with low rates for completion in Washington.
3. Consolidate your debts.
In debt consolidation, you pay off your unsecured debts by taking out a loan with a lower interest rate. in theory, this means that you only need to make a single monthly payment for your loan which is lower than the amount you would’ve spent paying off your unsecured debts.
4. Settle or negotiate with your creditor.
Debt settlement differs from the first two options as the principal you owe is negotiated downward. Because of the reduced principal you owe, debt settlement is generally a faster and less expensive option than either debt counseling or debt consolidation. Our experienced Washington debt settlement attorney has years of experience helping clients settle their debts in Vancouver, Seattle, and more areas in Washington.
5. File for bankruptcy.
If you’re unable to repay all or part of your debt, filing bankruptcy may be the only possible solution. Bankruptcy stops creditor collection and absolves debtors of most or all of their unsecured debts. If you’re considering bankruptcy, speak with our Vancouver bankruptcy attorney today.