Dealing with debts is the toughest thing to do, particularly when there seems to be no way you can clear them.
The pandemic situation has made it even more stressful because almost everyone is facing the financial impact.
Right now, you may actually need to borrow more rather than clear what you already owe!
If you are struggling with the crisis, having a proper plan to manage your debts during the pandemic can save you from a lot of stress and trouble.
Here are some useful pieces of advice from experts to help people in financial crises right now.
Contact Lenders If You Think You Will Miss Payments
In the current situation, it is quite possible to fall behind on payments for your credit card, mortgage, auto loan, student loan, or other debts.
A proactive approach would help you handle the situation better. Consider calling your lender and explaining the situation.
Some may even offer hardship programs to help you by allowing you to adjust some payments or temporarily delay them.
They may even decide not to charge the interest charges. You may even get the option of a longer-term program that allows you to pay back over an extended period at a reduced interest rate.
While you get relaxation with payments with this approach, you will also end up avoiding negative credit reporting.
Consider Bankruptcy If Things Seem Out of Hand
For someone whose debt is spiraling out of control at this point, bankruptcy would be the best option.
This is the best decision if you cannot pay back your debts and have no hopes of negotiating terms with your lenders.
It is advisable to see a bankruptcy lawyer sooner rather than later if you are facing a lawsuit by a creditor or have assets that you want to protect.
They can also help you save your Social Security or other income from debt collection.
Remember that bankruptcy is the only option if you want to get your finances back on track after having a clean slate.
Look for an attorney who has ample experience and reputation so that they can help you get the best possible outcome.
Seek Advice From An Expert Credit Counselor
When you are in deep debt, you may not really be sure about the aforementioned options.
Still, making the right decision in time can save you a lot of trouble. Seeking guidance from a credit counseling agency is a good idea to get advice on your debts and the option of bankruptcy.
They would want to know everything about your current employment status, financial situation, and long term financial goals.
You must share everything with them clearly so that they can give you the best recommendations according to your needs and circumstances.
They can help you find the best hardship program, enroll for the debt management plan that works, and guide you about bankruptcy.
It is easy to fall for scams when you are facing a debt crisis. But taking the right approach and consulting trustworthy experts can save you from financial and legal hassles.