Dallas Personal Debt Relief and Personal Debt Settlement[yoast-breadcrumb]
Getting Out of Debt in Dallas: Personal Debt Relief and Settlement Options
Debt can feel like a heavy burden. When you’re struggling under the weight of credit card bills, medical bills, or other debts, it can be hard to see a way out. But there are solutions. Understanding your options for debt relief and settlement in Dallas can be the first step to getting your finances back on track.
At companies like Delancey Street, we know how stressful and overwhelming debt can be. We want to help you find the debt relief option that best fits your situation in Dallas. Whether it’s debt management, debt consolidation, or even bankruptcy, we’re here to walk you through it.
Debt Management Plans
A debt management plan, or DMP, can help you consolidate multiple debts into one monthly payment. Here’s how it works:
- You work with a credit counseling agency like Delancey Street. They negotiate with your creditors to reduce interest rates and get late fees waived.
- You make one monthly payment to the agency. They distribute payments to your creditors.
- Over time, you pay off the full amount owed. But usually at a lower interest rate and with lower monthly payments.
The benefits of a DMP include avoiding late fees, lowering interest rates, and consolidating debts into one payment. This can make managing bills easier each month. However, it may take 3-5 years to pay off debt this way.
Debt consolidation involves taking out a new loan to pay off multiple debts. This can be done in two main ways:
- Credit card balance transfer – Transfer high-interest balances to a new credit card with a lower promotional interest rate.
- Debt consolidation loan – Take out a personal loan to pay off credit card and other debts.
Consolidating debt can lower monthly payments by reducing interest rates. But you need good enough credit to qualify. And you have to be careful not to run balances back up on old accounts. Debt consolidation works best when you commit to not taking on new debt until old debts are paid off.
Debt settlement, also called debt negotiation, can help you pay off debt for less than you owe. Here’s how debt settlement works:
- You stop making payments to creditors and instead save money in a secure account.
- After you have enough saved, a settlement company like Delancey Street negotiates with creditors.
- Creditors agree to accept a lump sum payment that is less than the full amount owed.
Settling debts can resolve balances for 30-50% less than you owe. But it will damage your credit score. And creditors may take legal action if you stop paying. Debt settlement works best for people who are behind on payments or have debts in collections.
Declaring bankruptcy legally eliminates many types of debt. But it also negatively impacts your credit for 7-10 years. There are two main types of personal bankruptcy:
- Chapter 7 – Liquidates assets to pay back creditors. Remaining debts are discharged.
- Chapter 13 – Establishes 3-5 year repayment plan to pay back creditors.
Bankruptcy can wipe out credit card, medical, and other unsecured debts. But you may have to give up property and assets. Filing bankruptcy also makes it very difficult to get new credit or loans for years. It’s a last resort when you have no way to repay debts.
Finding the Right Debt Relief Option
The debt relief process can seem overwhelming. But you don’t have to figure it out alone. Reputable credit counseling agencies can help you understand all your options. They provide advice based on your unique financial situation.
At Delancey Street, our certified credit counselors offer free consultations. We help create a customized debt relief plan to fit your needs. Whether it’s setting up a DMP, negotiating with creditors, or filing bankruptcy, we’re here to guide you each step of the way. Our non-profit agency has 50+ years experience helping people regain financial freedom.
You can feel empowered taking control of your debt. With the right help, you can reduce stress and see the light at the end of the tunnel. Don’t wait – reach out today to start resolving your debt situation. Relief and a brighter financial future are possible.
We’re here to help with compassion and confidentiality. Contact Delancey Street or a reputable credit counseling agency to discuss your debt relief and settlement options. You deserve to find solutions and achieve financial peace of mind.