Debt Repair Tips
Debt Repair Tips
What starts out as manageable debt can quickly become overwhelming if you are not prepared. Credit card bills multiply, household expenses become unmanageable, and unexpected bills such as medical bills or auto loans make it impossible to meet your daily expenses. If you are sinking deeper and deeper into unmanageable debt, consider these tips for repairing your credit:
• Force the creditor to validate your debt. A creditor has to validate your debt to collect on it; otherwise, you do not have to pay them. The Statute of Limitations limits the time a creditor has to file a claim against a debtor, usually to between three and ten years. If your creditor misses filing a claim during this period, they lose their rights to collect. You then dispute or affirm the amount of debt.
• Create a debt management plan. Consider speaking to a debt counselor about how to manage your current debt and avoid accruing more. Debt management in North Carolina allows you to shift your payments, giving you a longer repayment time. It requires you to prioritize your debt and analyze your income and fixed expenses to understand what you can and cannot afford.
• Consider the pros and cons of debt consolidation. Consolidating debts into one can have benefits, but it is important to consider all of the relevant factors before transferring your balances. Debt counseling helps you analyze such important factors as introductory interest rates, non-introductory rates, balance transfer fees, and other relevant terms.
• Restructure your debt. A debt counselor also helps you restructure your debt by working with your lenders to alter the terms of the debt. This may include a new interest rate or a new monthly payment. Debt restructure in North Carolina can be tricky, so it is important to seek debt counseling before choosing this option.
• Negotiate a debt settlement. Another option is to negotiate a settlement with the lender for a lower outstanding balance. This is generally just a portion of the original debt, and the remainder of the debt is forgiven. However, although the amount owed is reduced, you must still pay taxes on the forgiven amount.
• Rebuild your credit. The final step in repairing your debt is to rebuild your credit by lowering your overall debt and making any future payments on time.
Contact us
If you are concerned about your debt and interested in learning how to repair it, the law firm of John F. Hanzel, P.A. can help. Our debt relief professionals work hard to stop harassing creditor phone calls and settle your debt in a way that works for you. Contact John F. Hanzel, P.A. today for the debt help you need.
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