For many Michigan consumers, exceedingly high levels of debt can strip a great deal of enjoyment out of life. The stress and emotional turmoil surrounding financial strain can take a toll on one's health and relationships, as well as their bank account. For many in Michigan, a debt reduction solution is an absolute necessity for 2013.
One effective tool for debt reduction involves working with a credit counselor. These professionals are trained to work with consumers to assess their current debt status and work out a comprehensive debt solution. The process involves designating a monthly payment amount that is then dispersed amongst one's creditors. Credit counselors can also help negotiate lower interest rates and work to get penalty fees reduced or waived.
When choosing a credit counselor, it is essential that consumers understand that this field if rife with scams and false promises. As with so many things concerning finances, if a deal sounds too good to be true, then it probably is. Credit counseling can provide real and substantial results, but the process will not happen overnight. For many, it can take years to see substantial results.
For Michigan consumers who need a quicker path to debt reduction, or for those who simply do not have the funds necessary to repay creditors, other solutions may be a better choice. One option is filing for personal bankruptcy. The timeline of debt reduction through bankruptcy is virtually unparalleled by any other option. In addition, bankruptcy can lead to the discharge of many forms of debt, after which time there is no further obligation to pay.
Source: Money Talks News, "Resolutions 2013: How to Find Financial Help," Linda Doell, Jan. 4, 2013