Once you have assessed your debt, consider debt relief options. What is offered to you depends on the nature and severity of your debt.
“See if (you are) eligible for a balance transfer offer,” Dvorkin said. “For those with $5,000 or less in credit card debt, this is one of the fastest ways to pay off debt. A recent New York Fed credit survey showed that credit card rejections have increased. This may mean fewer balance transfer offers for those with employment and income gaps.
For those with high minimum payments, Dvorkin suggests investigating debt consolidation. “It’s a good option for those with up to $25,000 in credit card debt,” he said.
A debt management program is best suited as an option for people with over $25,000 in credit card debt Where bad credit. “Coming back in June[2020], the CFPB has released its quarterly report on trends in debt settlement and credit counseling. In this report, he predicted an increase in debt settlements as our economy experiences another economic downturn,” Dvorkin said.
And finally, there is the debt settlement option. This option should only be sought by those who “don’t care about credit damage but want to get out of debt without declaring bankruptcy,” Dvorkin said. Bankruptcy is what you should only consider if there is no other way out and you have received a trusted attorney about it.
Read more: 30 ways to get out of debt
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