If you feel like you are buried in debt, it may be time to change the way you handle it in order to gain control of your finances. In some cases, this could mean filing Chapter 7 or Chapter 13 bankruptcy. In other cases, you may benefit more from debt management.
In any event, you will need to learn how to manage your debt if you want the best results possible. Make sure you have a qualified debt management lawyer on your side to ensure you choose the right process for you. Click here to for more information on Chapter 7 bankruptcy (http://www.zerodownbankruptcy.com/Chapter-7/).
Make Monthly Payments
Even if you cannot afford to make the full payment on your debts, it is important to show some effort. If you make your payments in a timely manner, you can then contact the company and ask to create a new payment plan. This can prevent the interest from piling up, and creditors are more likely to make payment arrangements with someone who has demonstrated serious effort. It is never a good idea to just ignore the debt and hope it goes away.
Pay Off Small Balances First
It can be a crushing feeling to make payments every month but never really see any accounts listed as closed or caught up. Continue to make your monthly payments, but put more focus on paying off the smaller accounts first. This method offers you a more realistic goal that comes with the advantage of being able to see measurable progress. As you start to pay off bigger accounts, you will be fueled by the progress you already made on your other accounts.
Don’t Close All Accounts
In order to manage your debt, it might be a good idea to pay off some of your accounts. However, you should also keep them open so that you can demonstrate active lines of credit and build a strong credit history. Even if you can pay off all of your debts, it’s best to keep them open rather than close them. Your credit score could decrease if the majority of your accounts are all new.
Dispute Debts as Needed
Identity theft is a real issue today, which is just one reason it pays to constantly monitor your credit report. You are legally entitled to free credit reports from each of the credit bureaus every year. You should dispute any unknown accounts or errors on your credit reports.
Whether it’s an account that isn’t yours or an error in a late payment notation, checking your reports and disputing these errors can go a long way toward increasing your credit score. If you have other questions regarding debt management and bankruptcy, please call 1-800-DEBT-RELIEF (1-800-332-8735) for a free initial consultation.
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Related Links:
Florida Bankruptcy Attorneys
http://www.zerodownbankruptcy.com/
Foreclosure Defense
http://www.zerodownbankruptcy.com/foreclosure-defense/
Florida Chapter 7 Bankruptcy Lawyer