As we emerge from the holiday season, consumers from Texas and across the nation are now getting their first monthly bills for all those presents they purchased. For many, this may be an eye-opening moment where they realized that they might have gone a little overboard with their spending. This, unfortunately, is not uncommon. Holiday debt is often what ruins the rest of the new year for most people as they attempt to pay it off. So, how can it be fixed? Here are some of the best options at your disposal.
Debt collectors and your rights
The fact is that debt collectors do not have an ounce of pity for you or your situation. They will attempt to harass you as much as they possibly can until you pay what you owe. That is why it is so important to know your rights. Below are some of the federal laws that they must follow:
- They can only call from 8 a.m. to 9 p.m.
- They cannot call you at work.
- They must provide you with a callback number.
Filing for bankruptcy
There comes a point at which the amount owed is simply too great to realistically pay off within your lifetime. In this case, an attorney would suggest filing for Chapter 7 or Chapter 13 bankruptcy. Of course, an attorney experienced in bankruptcy law, as well as an accountant, would suggest a route that is best suited for your specific situation.
One of the common reasons why people’s debt continues to grow even after they’ve stopped spending is due to high interest rates. Even if you don’t have the money to pay off your bill, it is important to find a way to stop the bleeding. One of the routes you have is transferring your balance to another credit card that has a lower or no interest rate.
Although intentions may have been good, going into debt during the holidays is a common occurrence. If you believe that your debt has become almost uncontrollable, it is important to quickly consult with an attorney to find out what your options are moving forward.