Credit card debt can be one of the most daunting types of debt to overcome. Connecticut residents seeking debt relief understand how difficult it can be to get out from under thousands, and sometimes tens of thousands of of dollars in credit card debt. Thankfully, there are a variety of options available to individuals who find themselves deeply in debt, from debt management to Chapter 7 bankruptcy.
Debt management plans, or DMPs, are offered by credit counselors as a way to handle insurmountable debt. It involves consolidating all outstanding unsecured debts into one monthly payment made to the counseling agency. A counselor works on behalf of the individual to negotiate distribution of payment between creditors. Unfortunately, secured debts like loans and mortgages cannot be included in a DMP.
This option works for some people because it helps to waive mounting fees like late charges and over limit fees. These fees can impede an individual's progress toward becoming debt-free. In cases where debt management cannot be negotiated with creditors, it is also possible to seek the support of a bankruptcy law attorney to assess whether filing for Chapter 7 bankruptcy is right for the individual. In many circumstances, bankruptcy allows for the complete discharge of debt.
Ultimately there is no one right way to seek debt relief. For those in Connecticut who are facing serious credit card debt, it can be helpful to know the options. Retaining the services of an attorney in this situation can be helpful in order to assess the options and determine what is right for the individual in question, be that debt management, bankruptcy or some other form of debt relief.
Source: nasdaq.com, "The Last-Ditch Way to Pay Off Credit Card Debt", Oct. 29, 2017