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Can a Credit Card Debt-Management Program Help Me Avoid Bankruptcy?

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Can a Credit Card Debt-Management Program Help Me Avoid Bankruptcy?

Most people in the United States have at least one credit card. Credit cards have helped millions of people purchase items they want now, and being able to pay for the item later with interest. However, the convenience of credit cards has caused many cardholders to become victims to a seemingly never-ending amount of credit card debt. Many individuals turn to things like Auto Title Loans or bankruptcy in order to relieve themselves of debt, and this may turn out to be the best option for your particular financial situation. However, there is another option that may be better suited for individuals who may not need bankruptcy, but simply want to consolidate and pay off credit card debt. Debt-management programs (DMPs) can help people relieve themselves of credit card debt and seek to prevent accumulating credit card debt in the future.

How Do Debt-Management Programs Work?

There are agencies that advertise to help you consolidate all of your credit card debt into one monthly payment. Some agencies offer loans to credit cardholders to pay directly to your creditors, and you will then pay the agency monthly payments to pay off the loan. This is certainly one option, however, you may also have the option of choosing a debt-management agency that will take your monthly payment and distribute that payment amongst your creditors, and do so for a reasonable monthly fee. The difference between a loan-based debt-management program and a monthly fee-based program is that you will be paying fees in interest with a loan-based program and this amount could turn out to be more than a fee-based program.

By participating in a debt-management program, the debt-management agency will negotiate with your creditors to lower your credit card interest rates and reduce your monthly payments for each credit card. Most creditors will agree to reasonable terms, however, some creditors will not allow you to enroll certain credit cards in your debt-management program. Aside from the few credit cards that cannot be enrolled, you should be able to pay off your credit card debt much sooner than you otherwise would without the debt-management program, and you will be paying less in interest.

Many debt-management programs are legitimate, but there will always be some agencies out there that are looking to take advantage of you and you could end up paying a substantial amount in interest fees. Therefore, service fee-based programs that are offered by not-for-profit agencies are considered to be more legitimate than most other agencies offering debt-management programs. You should do as much research as possible to find out about any debt-management agencies you are considering.

Why You Should Speak With a Philadelphia Debt-Management and Bankruptcy Attorney

While most debt-management programs are legitimate and they have helped thousands of people overcome credit card debt, it is important to speak with a debt-management and bankruptcy attorney who can determine if a credit card debt-management program is an option worth considering. A Philadelphia debt-management and bankruptcy attorney will also provide you with other options to help you get control of your debt and learn to live debt-free in the future.

Contact The Law Offices of Georgette Miller and Associates, P.C. Today

If you are struggling with a mountain of debt and feel helpless, you should consider speaking with a Philadelphia bankruptcy and debt-management attorney as soon as possible. With high interest rates, it could take you years or even decades to pay off all of your credit card debt. At the Law Offices of Georgette Miller and Associates, P.C., our seasoned bankruptcy attorneys help businesses and individuals overcome debt and create financial plans that will help to prevent future debt. Our firm provides bankruptcy and debt-management services in Philadelphia, PA, New York, New Jersey, Washington, D.C., and Wilmington, DE. To find out if our office can help you tackle your debt, contact our office today by calling (866) 96-GMLAW.