Atlanta Bankruptcy Attorneys Recommend Personalizing Your Debt Payoff Plan
People customize their cars and computers, yet most would never think to customize their debt relief plan.
Nope, most folks stick to the old idea that they should pay off the debt with the highest interest rate first, according to Chicago bankruptcy attorneys. It's a great plan - if you can afford it. You'll save the most money this way because you won't have to keep paying that crazy-high interest in the future - and you'll put a stop to a principal balance that would otherwise keep growing out of control.
But for many people, it can be a struggle to keep up such high payments. Since the only way to chip away at debt is to pay over the minimum balance - which, at 2-3%, often only covers interest - it can take a lot of discipline and cash to make this method work. And unfortunately, many well-meaning people get discouraged and end up throwing in the towel. But if they would just look at debt relief as a customizable process, rather than one set in stone, they could probably find a plan that works perfectly.
Maybe the best way to get out of debt is to tailor your payment plan to your individual situation.
If you're having trouble making the highest interest payments, why not try the opposite? Start paying down your debt with the lowest rate. It will take less money to cover the minimum so you can apply more to the principal balance, making it quicker and easier to eliminate a debt completely. And the confidence you build after wiping out one debt might be enough to get you through paying off the others.
And of course, there's another time-tested option. If you can't seem to keep up payments, regardless of your interest rate, your debt might be too big to handle alone. Bankruptcy can make debt relief manageable by offering an affordable plan to reduce - or even eliminate much of your debt. And it gets better - filing for bankruptcy can also stop foreclosure and protect you from creditor actions like lawsuits. Find out if there's a bankruptcy plan that fits your family's needs with a free personal debt analysis, courtesy of an Atlanta bankruptcy attorney. Your family is unique, so why shouldn't your debt plan be?