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Finding the debt relief option that works for you

There may be many different reasons why Wisconsin residents find themselves in trouble financially. A person may have had to deal with an illness, unemployment, cuts in pay or has just been unaware of overspending. However, once these debts are acknowledged, the situation can seem overwhelming, causing a debtor to struggle with repayment and solvency.

Many options are available for debt relief. Some options provided by advertisements, friends and colleagues may seem like tempting quick fixes that are too good to be ignored. However, a person attempting to repay debts should be wary of certain debt relief options when trying to identify the best option. All methods o debt relief should be thoroughly investigated before you decide on the right one for you.

A modified payment plan might be a good option. Debtors can talk to creditors and negotiate a payment plan that works with their monthly salary. Contacting a credit counseling service is another option. This kind of service works with the debtor and creditors developing a debt repayment plan. In such situations, an agreed upon amount is paid every month to the service, which then pays the creditor. A debt consolidation loan is also an option, but some plans require some kind of property, such as a house, to secure the loan.

While these options may work well for many people, they may not be viable for some debtors with serious financial problems. Filing for bankruptcy under Chapter 7 or Chapter 13 in federal bankruptcy court can be the option for those Wisconsin residents lacking further alternatives.

Source: Consumer.FTC.gov, "Debt Relief or Bankruptcy?," Accessed on Oct 10, 2014

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