Americans currently have over $999 billion in credit card debt, over $1.17 trillion in auto loan debt, and over $2.8 trillion in non-revolving debt, aka loans. Needless to say, if you currently have a debt to your name, you’re not alone.
Debt is a lifesaver for a lot of consumers; however, it can quickly spiral out of control if left unchecked. The American Bankers Association recently found delinquency rates were on the rise with credit card delinquencies climbing to 2.74%, and auto loan delinquencies following not far behind at 0.87%.
The best way to safeguard yourself against contributing to the growing rate of delinquencies is to have a fiscal plan. Stay on top of your finances with these secrets to effectively managing your debts.
Contact The Law Offices of Patrick L. Cordero, the largest consumer bankruptcy filing firm in Florida, to learn more about how we can help you through difficult times. Call 305-445-4855 today to explore your options!
Sell Your Assets
When it starts to become harder and harder to make your payments, that is when you should start to take proactive measures to manage your debts. For those in a tight spot financially, selling your assets can give you the cash you need to stay afloat.
Assets that can yield a high return include jewelry, furniture, electronics, and whatever else has any resale value. If you don’t like the idea of getting rid of your things, keep in mind that it is still a far better option than filling for a bankruptcy.
Ask Creditors for Help
The worst thing you can do when creditors are calling is not responding. Creditors would rather get a few dollars from you as opposed to nothing at all and are willing to work out a repayment plan as long as you communicate with them.
Start by letting them know that you want to avoid bankruptcy, but can’t afford to make the previously arranged payments. Ask them if they can ease the burden for you by reducing your interest rate or monthly payments (or both). Fortunately, a majority of banks and credit-card companies have hardship programs for similar situations.
Note that before entering any program you need to make sure your interest rate and monthly payment are actually reducing, otherwise the repayment plan will be counterproductive.
Seek Professional Help
If the creditors are unwilling to work with you, then the next step is to seek consumer credit counseling or the help of a professional who can work with creditors on your behalf in order to resolve the issue.
The latest Florida bankruptcy law requires completion of credit counseling before bankruptcy filings can proceed. That being said, professional counseling is a much better alternative to bankruptcy.
Get Help from Friends and Family
Usually, borrowing money from friends and family is not recommended as it can make things awkward or put a strain on the relationship. However, every rule has an exception, and bankruptcy is one of them.
First, calculate the amount that is needed to avoid bankruptcy, and then ask for help from friends and family. Before you approach them, make a plan for how and when you will be able to repay the borrowed money.
Avoid any future issues or misunderstandings by writing out a formal repayment plan and having both parties sign it. This will help everyone involved feel more comfortable, as well as hold both parties accountable for their financial commitments.
Settle with Debt Collectors and Creditors
While settling your debt should be avoided under normal circumstances, bankruptcy isn’t an avoidable issue. Be cautious when dealing with debt settlement companies as they are known to ask for extra money.
Concentrate on debts that are charged off and have already been sent to collections. Once the agreement is made, make sure you are financially prepared to pay off some of the settlement amounts.
Consult with a Miami Bankruptcy Attorney
Believe it or not, life after bankruptcy and free of debts is possible. If you feel like you are in over your head with debt, then the Law Offices of Patrick L. Cordero are here to help you get back on your feet.
Our bankruptcy lawyers in Miami are more than happy to help you find viable options for debt relief. Contact us today to schedule the first consultation to getting your life back on track.