Debt Solutions to Avoid Bankruptcy in Chicago

When debt collectors begin to hound you for late payments it can become very scary. Bankruptcy is often the first thing that crosses someone's mind when they are drowning in debt. 

Sadly in the current economy bankruptcy is becoming increasingly more common in Chicago. However there are a couple of options that can help you avoid bankruptcy and get you back on your feet.

1. Consolidate your debt - 

For many people debt is spread out in several areas, a car loan, multiple credit cards etc. Due to  high interest rates, especially on credit cards this debt can require high monthly payments with little to no effect on the credit balance. The benefit of a consolidation loan is that it takes all of your debt and puts it into one balance. Not only will this make the payments easier to manage but debt consolidation loans have a lower interest rate which can save you a lot of money each month. 

2. Budget counselor -

We could probably all stand to take a little advice on budgeting our finances. However if you are struggling with debt, talking to a debt counselor could keep you out of bankruptcy. They will be able to review your finances and evaluate the money coming in vs. the money going out and help you put together a budget plan. They will share techniques to help you cut needless spending and cut costs if possible. The best part about these counselors is that their services are typically free leaving no reason not to take advantage of them. 

3. Debt Settlement - 

An option for relieving debt without filing for bankruptcy is debt settlement. You typically find a debt settlement company and hire them to negotiate the balance of your debt with creditors down. The total of your loans needs to be greater than $10,000 and they are often able to negotiate your debt down by 50%. It is important to find a reputable Chicago debt settlement company and although no fees will be collected until the debt is settled, you will owe them a fee. Some people try to negotiate their debt themselves. This can be done but you need to be a strong negotiator with a thick skin. Professional negotiators are often more successful because of their experience and expertise in the area.

No one wants to file for bankruptcy. These solutions may protect you from bankruptcy and get you back on track financially. 

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.