When you are overwhelmed with debt in Texas, it sometimes feels like your finances are irreparably damaged. However, there are many ways you can repair your financial situation. A previous blog discussed some of the paths to eliminating debt. Today’s blog will focus on helping you understand debt settlement.
High-interest credit card debt may be stretching your budget thin in Texas. Unless you are paying more than the minimum on each, getting multiple cards down to a zero balance could feel impossible. As a result, transferring all the accounts to a single credit card with a 0 percent annual percentage rate could sound like an excellent form of debt relief.
Many people in Texas and across the United States struggle with student loans and other types of debt on a daily basis. Although years of college and post-graduate school may have helped them get into the perfect career, it often ends with high amounts of student loans that must be repaid once the degree is earned. Students loans usually cannot be eliminated through bankruptcy, leaving people to find other ways of paying back their high student loans.
When people think of debt relief, they may automatically think of bankruptcy. However, bankruptcy is not the only option for relieving people of their debt. It is easy for people to accumulate medical expenses, credit card debt, student loans and bills. Yet coming out from underneath that debt can be difficult and take time. The Federal Trade Commission lists several debt relief alternatives for consumers to choose from.
Running your own business is challenging and rewarding. However, if money gets tight or debt becomes an issue, your business may not be the only thing to suffer. You may find your personal finances are in jeopardy too.
There may have been no prouder moment in your life than when your child walked across the stage to receive his or her college degree. That degree was a tangible symbol of the first serious independent decisions your child made without your help. However, if the truth were told, you played an enormous part in that success. In fact, you may pay heavily for years to come.
Once you make the decision to file for bankruptcy as a way to climb out of a substantial amount of debt, you face certain negative consequences. There is no question that bankruptcy can have a negative effect on your credit score, which can make it difficult for you to apply for loans, purchase a home and obtain school funding. After your bankruptcy has been discharged, however, you can immediately begin to rebuild your credit and get back on the road to a positive credit score.
In addition to helping you emerge from your heavy financial expenses, the bankruptcy process has steps in place to help you learn money management skills. Whether you are filing for Chapter 7 or Chapter 13 in Texas, you are required to complete a credit counseling course at least 180 days prior to filing for bankruptcy, as well as a debtor education course after submitting your paperwork. A certificate for both courses is needed before your bankruptcy can be ultimately approved and your debts discharged. Once you choose a credit counseling course that has been approved by the Department of Justice’s U.S. Trustee Program, you may learn some useful information that you can use to better your overall situation.
Mounting debt is stressful enough. Dealing with debt collectors shouldn't add to the problem. While repayment always the top preference, sometimes it just can't be done. The harassing phone calls don't help. While collectors have the right to seek you out, they don't have the right to impede on your daily actions and there are steps you can take if they're going too far.