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Whether you lost your job or had to deal with major medical bills following an accident, there are many ways to get into debt. If your loans mount to the point that you are seriously struggling, you may qualify for debt relief. This can lighten the load and improve your chances of actually paying back what you owe. Read on to find out how.

Different Types of Debt Relief

Just as there are various forms of debt, from credit card to business debt, there are different types of relief. The one that best suits your needs depends on your precise circumstances, from how much you owe to what kind of debt was incurred. Here are some common options:

  • Debt Consolidation: A debt consolidation loan gives you the money you need to pay off your current debts. You then simply have to pay off the new loan, which will have a fixed term of three to five years. This means paying interest on only one debt—plus, with good credit, you can get a low rate.
  • debt reliefBalance Transfer: This allows you to transfer the balance of a high-interest credit card to one with a lower interest rate—or even a 0% balance transfer card, which can give you up to 18 months interest-free. Read the fine print, however, as your interest rate could shoot up after that.
  • Debt Settlement: Did you know it’s possible to negotiate with lenders? You can request a debt settlement, in which you pay a lump sum to square away your debts. While you will have to pay immediately, the amount will be less than your total debt. Improve your odds of successful negotiations by hiring a debt attorney.
  • Bankruptcy: If you are facing business-related debts, you might qualify for Chapter 13 or Chapter 7 bankruptcy. A large portion of your debts will be discharged—giving you the relief you need to start fresh. While you won’t have to pay the money back, the fact that you filed for bankruptcy will appear on your credit reports for up to a decade.

 

If you need help with debts in Honolulu, HI, look to Greg Dunn, Bankruptcy and Debt Relief Attorney. A native of Oahu, this lawyer brings local knowledge and years of experience to the table. Since 1988, he has handled more than 12,000 bankruptcy cases alone. To discuss your needs, request an appointment online or by calling (808) 524-4529.

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