Choosing a method to reduce or eliminate credit card debt

Many individuals in Tennessee have experienced financial hardships after falling behind on credit card accounts. Those who have similar accounts in collections may consider pursuing debt forgiveness through consolidation. However, although an offer to consolidate may appear appealing, there could be consequences to using similar methods to reduce or eliminate credit card debt.

Falling past due on a credit account can be a daunting experience. Although one may be able to avoid a similar situation by paying the minimum amount due each month, those who are struggling just to get by may find it difficult to make the minimum payment. Once an account falls past due, creditors may seek to sell the account to a collection agency, which could bring about constant phone calls and letters seeking payment.

Those who are unable to keep up with credit card payments could consider reaching out to creditors for information on any available programs for temporary assistance. At some point, a person may also receive an offer to settle the debt. While the amount included in this offer may be much lower than the original debt, a person may still be required to pay taxes on the amount of debt that is forgiven through consolidation.

With the potential impact one’s decisions concerning how to handle credit card debt could have on his or her financial future, choosing the correct path can be intimidating. Fortunately, a person doesn’t have to make this decision alone, and by speaking with a bankruptcy attorney, one could obtain some much-needed guidance on all the available options. An attorney in Tennessee can evaluate a client’s financial circumstances and assist in forming a strategy to pursue relief from debts through the necessary outlets.