Credit cards are just a fact of life these days. Many people use credit cards for nearly everything, and that’s not necessarily a bad thing when they earn rewards points, cash and other benefits. The problems come when those bills can’t be paid off every month. The interest starts growing, and with it, the size of the debt. A small initial purchase can snowball into a comparatively large bill, and you could find yourself paying thousands annually in interest and fees. Strong Law Group can help you negotiate those unsecured debts and get them down to a more manageable size.
Secured vs. Unsecured Debt
When your debt is out of control, your stress levels are often just as out-of-control, and your credit rating starts to sink. When you are unable to pay your debts, there can be serious consequences, but those consequences vary based on the type of debt. Secured debts are debts that are backed by property, which is called collateral. Mortgages, for example, are backed by a home or other building, and vehicle loans are backed by a vehicle. If you fail to pay a secured loan, the collateral backing the debt can be seized.
Unsecured debts are not backed by property and include:
- Credit cards
- Store cards
- Personal loans
- Medical bills
- Cash advances
- Some utility bills
Although creditors cannot seize property when unsecured debts are unpaid, they have other options to collect on the debt. They can call you, send letters and list the debt on your credit report. They can also file a lawsuit against you. By being proactive, you can take control of the situation and your debt.
Debt Negotiation
When people think of ways to manage debt, they might first think of bankruptcy, but they often don’t realize there are other options, such as debt negotiation. During debt negotiation, you will work closely with your creditor to negotiate your debts to a more affordable amount. Most unsecured debts are eligible for negotiation, but the process can be complex. The legal team at Strong Law Group works with creditors to negotiate a fair settlement for you so that you can put the past behind you. Call Strong Law Group today to learn more about how debt negotiation can work for you or schedule a free case evaluation.