For many people, the thought of dealing with their mounting debt burdens can add considerable stress. However, it is important to review all of your debt relief options before deciding on any one path for financial freedom.
If you have recently received a debt collection call you are at an important crossroads for debt management. First, it is important that you verify the legitimacy of this debt before you make any attempts to resolve it. This means that you need to have the credit collector send you written verification of the debt to prove you are the responsible party. You may find that the debt is inaccurate or does not belong to you. If this is the case, dispute the debt with your lender directly.
If you do find that you are the rightful owner of the debt in question, consider your options for resolution. Evaluate your income against all of your debt liabilities and expenses to determine your ability for repayment. If your disposable income (i.e. after essential living expenses) is sufficient to support a payment on your debt accounts, contact your lender to negotiate a payment plan. You can request to have your monthly payment lowered, a reduction in your interest rate or even a waiver of any penalty fees for prior late/missed payments.
Another option is to ask about debt settlement or consolidation options through your lender. They may be willing to offer you a reduced principal amount on your account, or roll your total fees into one lower payment spread out over a longer period of time. If your lender is unwilling to work with your budget, or you have assets at risk of liquidation, bankruptcy could be best option. Always consult with an experienced Largo bankruptcy attorney about your debts before choosing any of these potential solutions.