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When you have mounting bills that you cannot pay or that you are struggling to pay, you may want to explore every possible solution for debt relief. High debt payments, such as for credit cards and loans, can make you feel stressed out and can keep you up at night. Debt can also keep you from enjoying life on your terms, saving for the future and more. This is no way to live, and you need to find a way to cope with this issue. The answer that you may be looking for could be debt settlement. This is a form of debt relief that has been effective for many New Orleans residents, and it may be exactly what you need to set you on a better financial path.

What the Law Says About Louisiana Debt Relief

The subject of debt relief is not widely known in Louisiana, and some people think that anything that allows you to erase debt that you owe must not be legal. The reality, however, is that there are several forms of debt relief available to you, and debt settlement is one of them. Debt consolidation is another option, and this is designed for those who have not yet fallen behind in debt payments and who still have a good credit rating. Settlement is a method used when consolidation is not an option, and it can provide you with significant and immediate relief when it is effective. The final option for debt relief is bankruptcy. Generally, all other financial solutions should be pursued before you seek help through bankruptcy.

What Personal Finances Look Like in New Orleans

If you are stressed out by your finances, it is easy to feel as though you are alone in your struggles. However, many New Orleans residents also face similar financial issues. There are approximately 390,000 residents in this city, based on U.S. Census Bureau data, and more than one in four residents live below the poverty line. More than that, the average per capita income in this city is less than $28,000 per year. However, the typical monthly mortgage payment is $1,612, and the monthly rental housing payment is $924. This is one of the larger expenses in a person’s budget. As you can see, many New Orleans residents live on a very tight budget. This can make it easy to fall into debt and difficult to climb back out of debt.

How Debt Relief Can Help You

If you are heavily burdened by debt, rest assured that there may be a debt relief solution available to you. Through debt settlement, your professional debt negotiator assigned to help you will contact each of your creditors. This includes creditors for credit cards, unsecured loans and other unsecured debts, and it will not include secured debts. The negotiator will ask your creditors to reduce the amount owed on your account because of your inability to pay. Many creditors do not want to risk losing all of the amount owed to them, such as if you file for bankruptcy. They would rather receive some money rather than none. Therefore, they may agree to write off a portion of your debt. This will immediately reduce the total balance as well as the monthly payments. Your budget will be easier to manage because your debt payments will be lower. In addition, you may be able to pay the full balance off more quickly.

Who Benefits From Debt Relief?

Debt relief is truly beneficial for those who qualify, but this is not a feasible option for everyone. Creditors are not required to accept your settlement request. Instead, they must be properly motivated to do so. Generally, they are only motivated if you have fallen behind on your payments and they feel as though you are a credit risk to them. If you are still making payments on time, this is not a solution that likely will work well for you. You may need to consider using a debt consolidation loan as an alternative.

Who to Turn to For Debt Relief in New Orleans

It may seem like there are many people who want to take advantage of you when you are in dire financial straits. However, you can find legitimate, professional help for your situation. First, consider seeking advice from a reputable debt counselor. The counselor will provide you with budget advice and will assist you in determining which method of debt relief is a better fit for you. This assistance can get you started on the debt relief process.

Many people carry debt balances. While some are able to pay all of their bills on time each month, others lack the financial means to do so. If you can no longer pay your bills on time, you understandably need to find someone to help you improve your situation. After all, each month, you may fall farther behind until you do finally reach out for help. If you are seeking a solution to your debt situation, debt settlement may be right for you. Turn to a credit counselor for initial assistance with your debt relief needs.