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Debt relief choice depends on consumer's income, debt load

Many consumers in Washington state are looking at their finances now that the hectic holiday season is over. For some, the toll was steep, and it may have added to an already precarious debt load problem. Those who have a clear overload of debt and cannot pay even all of the minimum payments due on all accounts, must take some kind of debt relief action. According to experts, there are several debt relief paths to resolving such problems.

Finding a debt relief option is virtually impossible without knowing one's monthly expenses and income. Make a list of your total available monthly income and compare it to a detailed itemization of all monthly bills and household expenses. The schedule of expenses and payments should be thorough.

If there is money left after deducting all monthly debt payments and all monthly living expenses from one's monthly income, then the problem is not that bad. Probably the best bet is to stop incurring further debt and work on slowly paying the bills down. If there is no money left, however, and there is in fact a deficit, then a choice between debt consolidation, debt management or bankruptcy will have to be made.

Debt consolidation and debt management are methods of dealing with the creditors and paying them either a negotiated reduced amount on their total bill, or it may involve paying monthly payments per an agreed-upon payment plan. Both methods attempt to work out some kind of payment on the debt, either quickly or more gradually through monthly payments. A percentage of consumers, however, will always be unable to pay along those lines because they have instead gone over the threshold of no return.

Once over that threshold, the individual or married couple residing in Washington state will want to consider the bankruptcy debt relief option. Engaging in a free consultation with an experienced consumer bankruptcy attorney is the best way to learn the powerful relief that may be available. Potential filers will also learn if they are qualified and what the impact will be in every respect.   

Source: consumerelectronicsnet.com, "Top 10 Jungle Explains Debt Relief: Your 5 Choices in the Financial Jungle", Jan. 16, 2018

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