When it comes to managing debt, most people fail because they do not have a plan in place. They simply get overwhelmed and either give up for end up hiring a richmond bankruptcy attorney. Before seeking the help of an attorney, you may want to consider credit counseling.
Credit Counseling agencies that lower your monthly payments by lowering your interest rate are not telling you the whole truth. Paying less each month on the same principal balance means you’ll be in debt longer than if you made the original higher monthly payment. For example, imagine you owe $20,000 with minimum monthly payments of $600 per month. Reducing your payments to $400 per month with no change in the principal balance ($20,000) does nothing but extend the repayment term.
A $20,000 balance on a credit card will take you over 30 years to repay making only the minimum monthly payments. Your creditors calculate the minimum payment to ensure that most of your payment goes towards interest. They also calculate the minimum payment to ensure that you stay in debt with them for half your lifetime.
There’s only one way to get your payments down to an affordable level AND shorten the time to repay your debts: Reduce the principal balance through Debt Settlement. Creditors don't want you to know this, but you do not have to pay back all of your debt. They will settle for a fraction of what you owe.
The key to freeing yourself from the chains of debt is to reduce the amount you owe your creditors. Here at Debt & Bankruptcy Network, we specialize in negotiating your principal balances down to manageable levels. Lowering the amount you’ll owe your creditors means we can not only slash the amount you’ll set aside each month (your payment) but also slash by years (in most cases) the length of time required to get you out of debt. For more information on credit counseling or bankrutpcy, be sure to visit https://richmondbankruptcyattorney.business.site/.