Bankruptcy offers fast debt relief for people who have become overwhelmed by debt. It can eliminate unsecured debt, or it can restructure your debt so that it is more affordable for you to repay.
Yet not all people can file for bankruptcy. Some don’t qualify because of their income, and others choose not to file because they don’t want to liquidate certain assets that are not protected by the exemptions. Others worry about the stigma of filing for Gilbert bankruptcy, so they look to alternative methods to deal with their debt.
If you’re not quite ready to call a bankruptcy law office yet, consider these four alternatives for debt relief first:
Pay More than the Minimum
Credit cards carry exorbitant interest rates. Every day that you carry a balance, you are sinking yourself deeper into debt. If you pay only the minimum amount that’s due each month, you will end up paying several times the original amount you owe by the time it’s paid off. So if you rack up thousands of dollars in debt, you’ll end up paying tens of thousands with interest.
Pay more than the minimum balance on your credit cards each month so that you can pay down the balance faster. Just pay what you reasonably can. Even if you shave a few months off your payments, you’ll save yourself money and get out of debt faster.
Use the Snowball Method
Instead of paying a little more on all your credit cards, you can try out the “snowball method,” so named by financial guru Dave Ramsay. Pick the credit card with the lowest balance, and put all the extra money you have toward paying it off each month. When that card is paid off, move to the next card with the lowest balance and put all you can toward paying that off. Keep going until all your cards are paid.
You’ll pick up momentum by paying off the cards with the smaller balances. You’ll feel invigorated to pay off your debt, and you’ll start feeling better about your financial situation. You’ll feel like you actually can get to the light at the end of the tunnel instead of laboring under your mountain of debt forever.
Take Advantage of Balance Transfers
A lot of credit cards offer you a zero-percent interest rate if you open an account and transfer your balance from another card. Others will give you a low interest rate on later balance transfers also. The low interest rate is available only for a limited time, so you’ll have to pay as much as you can during that time to get the most benefit.
You can transfer balances from card to card, keeping your interest low or eliminating it completely, thereby saving yourself a lot of money. Just pay attention to the fees so that you aren’t setting yourself back with excessive charges.
Get a Side Hustle
The more money you can make, the more you can pay toward your credit cards and get out of debt faster. In addition to trying to get a raise at work, you can also take on a side hustle to pad your income. You can cut lawns, fix computers, walk dogs, watch kids, and more. Tap into your skills and your interests to determine what you would like best and what would give you the most financial opportunities.
You can work in the evenings and on your days off. The more you can make, the faster you can get rid of your debt.
You have a lot of options for debt relief, depending on how much effort you want to put in and how much time you have. But the longer it takes for you to pay down your debt, the more you will ultimately spend on accumulated interest and fees, and the more your credit history will suffer. Filing for bankruptcy in Gilbert can give you fast debt relief, eliminating much of your debt and helping you get a fresh start.
If you are struggling with debt, call Gilbert Bankruptcy Lawyers to learn more about debt relief through bankruptcy. Our experienced bankruptcy lawyers will analyze your financial situation and make targeted recommendations for getting maximum debt relief in the shortest amount of time. We represent individuals who want to file Chapter 7 or Chapter 13 bankruptcy, as well as business clients. Call us today to talk with a bankruptcy attorney about your options.
Gilbert Bankruptcy Lawyers