What is debt relief and how can it help me?

With the current economic recession, many Americans find themselves in a precarious financial position. However, a growing number of Louisiana residents are choosing debt relief to make a fresh start and begin to rebuild for the future.

At times, events outside of our control, like an auto accident, family illness or an unexpected layoff from work can result in an unsustainable financial burden. It isn’t uncommon for individuals to incur unsupportable credit card debt while attempting to deal with difficult financial times. Unfortunately, unsecured credit card debt carries with it very high-interest rates that can quickly compound the situation. There is a solution in the form of debt relief.

There are many tools at the consumer’s disposal that can free him or her from the stranglehold that unsupportable and crippling debt can have. Debt relief can take on many forms, depending on the level and type of debt that is being carried. The first option, which might be considered under a debt management plan, might include debt consolidation in the form of a secured loan. A consolidation loan pays off your unsecured creditors and provides a single payment at a lower interest rate that is amortized over an extended period resulting in a more manageable, lower monthly payment.

Another tool used to relieve financial stresses is debt settlement. Typically with the assistance of a dept manager or a lawyer, some kind of repayment method can be agreed upon that suits your current financial reality. It is possible to represent yourself during the negotiations, but the reality is a professional understands the process and can draw upon contacts in the industry to reach more favorable terms.

A good plan for debt relief might also include personal bankruptcy or what is often referred to as Chapter 13. Individual bankruptcy allows the person to repay all or part of the money owed to creditors. Repayment plans typically involve either 3 or 5 years of manageable monthly installments to clear all debt. However, in the meantime, the monthly payments are something that you can financially afford.

The first step to any plan for debt relief should begin with a consultation with an attorney who specializes in financial matters of this nature. A bankruptcy attorney is able to determine the best course of action to suit your particular situation and negotiate with creditors on your behalf, so you are free to get on with your daily life.