While it feels overwhelming to pay off your debts, you do have options. Some of the most common strategies to pay off credit card debt include debt settlement, debt consolidation, and bankruptcy.

Each method will depend on your unique financial situation, so talk to an attorney to learn which option is best for you.

A debt settlement is when a lender and a borrower come to an agreement to pay off an existing balance. This is usually done with one large payment while the remaining balance is often forgiven.

Lenders may find this option favorable to ensure some amount of the loan gets paid. Otherwise, they risk losing it if borrowers declare bankruptcy or pursue expensive legal actions.

Borrowers benefit since they likely won’t have to pay the full sum of the owed debts.

To determine what is paid, your debt is negotiated, typically by a third party like Richard Hughes. With his experience as a lawyer, he has the negotiation skills to help you come to a settlement.

Debt consolidation is a type of debt management where you combine all of your debts under one large loan. This often makes paying your debts more manageable and may even save you money.

Not only are all your debt payments in one place, but you may get a better interest rate compared to the interest rates on your other loans.

An attorney can advise you on the best way to consolidate your debt for your personal financial situation.

Filing bankruptcy is a big decision that is dependent on your financial situation. It’s important to understand the implications of filing bankruptcy before moving forward. Richard Hughes can help you understand your options.

The two most common types of bankruptcy for individuals with credit card debt are Chapter 7 and Chapter 13 bankruptcy.

Chapter 7 pays your debts by selling off your assets and discharging the rest of the amount owed. Chapter 13 lets you keep your property, but you have to make a debt repayment plan and make regular payments over 3-5 years.

While you are not expected to pay the rest of your debts after filing for bankruptcy, bankruptcy can drastically affect your credit score for the next several years. If you don’t have enough debt or only one kind of debt, you may want to explore other options than bankruptcy.

A bankruptcy attorney can be an invaluable resource while you are paying off your debts. In addition to counseling you on how to approach your finances, they can also prepare documents for you, deal with your creditors, and represent you if you have court hearings.

Getting legal assistance can be a vital step in regaining control of your financial situation.

You may want to seek legal advice if your creditors are constantly harassing you, you are facing a lawsuit for credit card debt, you’re considering bankruptcy, or you’re uncertain about your rights and legal options with your current debt.

When paying off credit card debt, it’s important to at least pay the minimum amount due on each card you have. This will keep your credit score from going down and protect you from other penalties for missed payments.

After the minimum payment, pay off the credit card balance with the highest APR first. Your APR is the amount of interest you pay on the money you borrow. By paying off the highest one, you won’t pay as much in interest compared to paying off all your debts at the same time.

While you’re paying off your card, try to keep additional expenses separate from your cards with debt. By adding charges, you may start accumulating interest on them as well as your current debt.

Keep repeating this process until your debt is repaid. If you need financial or legal help during this time, reach out to Richard Hughes to guide you through the process.