Moving Away From Debt

: Chris Lee Law Firm

  Filed under: Debt

debtWhile multiple solutions are advertised everyday for finding debt relief, they are anything but one in the same. One of the biggest challenges for dealing with debt is finding the right solution. Before giving up and going with whatever seems easier, it is important to know why some options should be considered or avoided altogether.

Credit Counseling

Finding help through a reputable credit counseling agency is never a bad idea. In fact, it is one of the best places to start looking for help when debts become overwhelming. The reason is that a quality credit counselor operates as a non-profit agency and can provide valuable resources at an affordable price, or even free. Further, they offer a wide range of services from educational courses on budgeting and debt resolution to investing and saving techniques. In general, there isn’t a debtor in existence that could go wrong seeking help from a reputable credit counseling agency. However, if debt accounts are already delinquent, time is of the essence.

Debt Negotiation

Credit negotiation is another good place for debtors to start when attempting to resolve debts. There is generally no need to run straight to debt settlement or bankruptcy without first trying to negotiate directly with creditors. Negotiating debts can be time consuming, but are often worth the effort when payments are lowered and financial relief is in sight. The trick to negotiating debts is to develop a plan of a budget, how much can one afford to pay each month and which account modifications can help achieve these goals. Preparation is crucial in a debt negotiation, along with contacting the creditor as soon as money becomes tight.

Debt Settlement

Settling debts is an appealing concept. Why pay all of what is owed, when you can get out of debt with a fraction of the cost? Well, debt settlement is better left as one of the last resort options outside of bankruptcy. The reason is that debt settlements require a  more drastic level of default, which also brings more credit damage. Once debts are settled a person may find that they are still liable for repaying debts close to what they owed once all the penalties and fees are included. Last, settling debts is never viewed as favorably in the eyes of future creditors as debt satisfaction and repayment.


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