If you're in severe credit card debt, you may try to negotiate with your creditors to stay afloat. But if some of your cards default, collection agencies and other debt collectors may harass, threaten, or even bully you into making payments you simply can't afford. The threats and harassment can lead to stress, anxiety, and a multitude of other health problems. If you take the right steps, you can find a way out of your extreme debt.
How Does Credit Card Debt Change Your Life?
Debt and other financial woes can affect your emotional and psychological health, including credit card debt. Many credit cards carry high-interest fees that can quickly add up over time. Even making minimum monthly payments on your cards may not be enough to reduce your debt. The debt may eventually lower your credit scores and ratings.
If you default on one or more of your cards, you could experience a number of life-changing problems. Third-party debt collectors may obtain costly default judgments on you and take your valuables and assets to cover the fees and monies you owe. You could lose income to wage or bank account garnishment.
You can avoid the perilous situations above by taking charge of your financial problems now.
How Do You Manage Your Extreme Debt?
Some people obtain debt consolidation services to manage their extreme credit card debt. However, consolidating your debt might not be affordable, or even feasible, at this time. In addition, some creditors and collection companies may not accept reduced monthly payments on your debt, especially if the debt is considerably high. The companies may want you to pay down your debt before they work with you.
You may want to speak to a bankruptcy law firm about your growing debt. A legal firm can examine your debt, assets, and other finances to see if you qualify for Chapter 13 or Chapter 7 bankruptcy. Chapter 13 allows you to gradually pay off your credit card debt instead of discharge it completely.
Although Chapter 7 may require you to surrender some of your assets and property to creditors, you may be able to discharge the majority, if not all, of your debt completely. A law firm can tell you more about Chapter 13 and Chapter 7 when you schedule an appointment.
Don't allow your severe credit card debt to overshadow your life. Contact a bankruptcy legal firm for more details about Chapter 13 or Chapter 7 today.