Debt relief options for people with bad credit

Reducing debt quickly could be challenging when a person has a low credit score. Although people with good credit may be able to use consolidation loans or new low-interest credit cards to lower their monthly payments, these options might not be available to Floridians with credit scores below 600. Fortunately, there are still some options available.

If a person can’t qualify for a personal loan on their own, they may be able to get the money they need with a co-signer who has a high credit score. Paying a co-signed loan on time could help a borrower improve their credit score, but paying the bill late or missing payments could damage the co-signer’s credit. Friends and family may be hesitant to sign for a loan for someone with a poor payment history or no stable income.

Debt management programs offer another option for people struggling to make ends meet. These programs may be able to lower interest rates and set up a manageable payment plan to resolve debts. In some cases, the person only has to make one payment a month to cover all of their bills. It may take up to five years to pay off debts with the help of a credit counselor, and individuals cannot use their credit cards while they’re in the program.

Excessive debt is a common problem, but there are solutions available to people who have been struggling to pay their bills. A bankruptcy lawyer may help a client explore their options. Chapter 13 bankruptcy is similar to a debt management program but may also help a client avoid foreclosure or repossession while they make affordable monthly payments to the court.