Debt Relief Options If You're Facing A Financial Crisis

Credit cards and other types of debt can quickly begin to add up and before you know it, you're in over your head. One of the first priorities when it comes to which bills to pay first is likely your rent and utilities. If you are facing financial difficulty, your credit cards and other bills may get paid late or go into collection. No matter what your situation is, there are several solutions available when it comes to digging yourself out of debt.

Debt Consolidation

Knowing exactly where you stand financially means taking inventory of your entire debt. Run your merged credit report and your credit or FICO score to check for discrepancies. There are many programs available independently or through your financial institution that can help you consolidate your debt into one low, affordable monthly payment.

If you go through your bank, they may offer you a low-interest loan option that pays off all of your debt and in turn you make a loan payment to the bank. You must still have a good credit rating and no debts in  collection. If you've lost your income or your credit score is below 600, you may qualify for debt consolidation through a financial services company.

Payment Arrangements

If you are just facing minor financial setbacks and you need temporary assistance, call your credit card or revolving account companies and ask to make payment arrangements. Some businesses may offer you a deferment plan or allow you to skip a payment. This may give you the push to get your finances back on track.

Credit Counseling

Credit counseling is available through many debt relief and non-profit industries. They offer tips and advice about how to manage your debt and how to pay down your credit cards.  They may suggest transferring high balance cards over to zero-interest accounts or credit cards to eliminate fees and put more cash back in your pocket each month.


One of the last resorts to finding debt relief is to file bankruptcy. Bankruptcy may be an option for you if you are unable to financially sustain your lifestyle and your credit cards and other accounts are past due or in collection. There are a few types of bankruptcy but most people choose either chapter 7 or chapter 13 bankruptcy. Consider talking to an attorney like Curtis A. Anderson, Attorney At Law for advice.

Chapter 13 bankruptcy allows you to restructure and repay your debt back to creditors. This is a good option if you are financially able to pay your debt back and you don't want to risk losing any assets.

Chapter 7 wipes out your entire debt load. You do not have to pay it back, unless otherwise specified by the bankruptcy judge. The downfall is that it can affect your credit for several years and you may have to forfeit some liquid assets.

Speaking to a qualified attorney who specializes in debt relief and bankruptcy will allow you to determine what the best course of action is for your financial situation.