Posted On: July 29, 2010

Help! I Am Overwhelmed With Consumer Debt!!

A Sacramento bankruptcy attorney responds to: Help! I Am Overwhelmed With Consumer Debt!!

Being overwhelmed with consumer debt occurs where the debt is too large, the interest rate is too high or both. The agreement to pay signed before the credit was given requires repayment of the debt in monthly installment amounts. The interest is usually commensurate with your FICO at the time the agreement is submitted. If the repayment terms of consumer debt outweighs the ability to repay then there are several options to deal with the repayment of debt.
Paying the minimum amount will only pay off the monthly interest incurred. Leaving the entire amount unchanged and the problem unsolved.

The debt could be paid off by settling with the credit card company and paying a reduced amount in a lump sum . This usually happens where the debt is unpaid for a couple of months. Many debt settlement companies focus on this aspect of debt settlement. They will agree to take installment payments in order to pay their fees and pool money to settle. While the payments are being made to the debt settlement the debt is considered late and interest is accruing. Moreover the agreement with the debt settlement company will not prevent creditors from taking legal action.

Many debts can be consolidated into one loan. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.
The last option should be bankruptcy. Bankruptcy will offer protection and a release of your obligation to pay depending on your income. If disposable income is high enough then Chapter 7 is not available. A Chapter 13 could be filed where a fraction of debts that equal your disposable income would be paid off over 5 years.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

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