Debt relief options for Florida residents

Individuals struggling to cope with an unmanageable financial situation have a number of debt relief options available to them, but unfounded fears that pursuing some of these options could lead to dire consequences will deter many of them from taking action. While discharging a debt in a bankruptcy or settling it for less than the full amount owed will likely impact an individual’s credit rating, this temporary setback should be weighed against the stressful toll that money problems can take on one’s well-being.

A popular option for those wishing to reduce their monthly outgoings is to transfer as much debt as they can to credit cards that offer low interest rates, but this strategy can backfire if these low rates are promotional and come with an expiration date. Transferring balances onto credit cards can also impact credit scores as revolving debt levels are an important part of the major credit bureau’s scoring algorithms.

Credit counseling and debt negotiation are generally seen as the major alternatives to filing a bankruptcy. Both of these approaches require creditors to accept less than has been agreed to, and both can therefore negatively impact credit scores. The companies offering these services also operate in a relatively unregulated part of the financial world, and consumers considering this path would be wise to do their homework before making any commitments.

Attorneys with experience in this area may go into detail about the various forms of debt relief and how they compare to filing a bankruptcy. Attorneys could also dispel some of the myths surrounding debt relief and bankruptcy, and they may also explain how a Chapter 7 or Chapter 13 filing puts an end to creditor harassment and provides the possibility for a financial fresh start.