At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., we are determined to help our clients identify and execute every possible option toward debt relief. If you and your family are facing financial difficulties, we can help. Here are 4 tips for debt consolidation that can help you return to solvency. Contact our Buffalo bankruptcy attorneys for more information.
Stop Using Your Credit Cards
It’s easy to forget about purchases that you’ve made on your credit card. Until you see the monthly bill, that is. Frivolous spending on credit cards is one of the most common ways that people go into debt. The best way to stop this problem is to stop using your credit cards. It’s very difficult to pay off credit card debt if you continue to make purchases with it. We aren’t recommending that you close your account, as this can hurt your credit score. Just refrain from using it. Lock your cards in a safe if you have to. While it may sound extreme, measures such as this have been proven to work.
Debt Consolidation Loans
If you owe debt on multiple credit cards, or have several outstanding loans, there are products available that let you transfer all your debt into one category. Debt consolidation loans will charge no interest rate for a limited time (after which it will usually kick in with a double-digit interest rate). A balance transfer card can enable you to pay off large chunks of debt in a short amount of time. However, you will most likely have to pay a transfer fee to get one. Good credit scores and high income is also a usual requirement.
Make a Realistic Budget
The best way to cut down on costs is to make a realistic budget. Allocate a certain amount of money to pay off bills/debts, avoid frivolous spending, and calculate your necessary monthly costs. Seeing the actual numbers on a spreadsheet or piece of paper can give you a great visualization of what goals you will need to accomplish. For more information, contact our Buffalo debt consolidation attorneys.
Bankruptcy as a Last Resort
One of the standard individual bankruptcy options is a Chapter 7 bankruptcy. Both individuals and corporations are eligible, and Chapter 7 bankruptcy is the most common in the United States. This is the closest thing you can get to a “fresh start.” If you file for Chapter 7 discharge, the courts will liquidate all of your assets and give the proceeds to your creditors. Certain exemptions may allow you to retain some of your property. It’s important to note, though, that some debts are exempt from discharge. You cannot get rid of child support payments, for example, or student loans (except in rare cases), property taxes, or income taxes less than three years old.
Chapter 13 bankruptcy, meanwhile, allows the filing party to maintain control of nonexempt assets while reorganizing and paying off debt. With this option, debtors create a debt repayment plan that lasts three to five years, after which time all remaining debt is discharged. This option is particularly effective at stopping home foreclosures.
An experienced Buffalo bankruptcy attorney will help you determine which individual bankruptcy option is best, putting you on the path to financial freedom.
If You are Having Debt Consolidation Difficulties, Contact Our Buffalo Law Firm Today
Contact an experienced Buffalo Bankruptcy Attorney at Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., online or by phone to discuss your debt consolidation issues and set up a legal consultation whenever your schedule permits. We welcome the opportunity to represent you.