You have been trying for years to pay off your debts, and you are getting nowhere. It is only natural to feel demoralized. Even those lab rats that press the lever multiple times, but it gives them treats less and less often, eventually give up. Of course, you are not a lab rat, and you cannot just walk away from your debts. When the lab rats stop pressing the lever, they still get a comfy cage to curl up in, food pellets to eat, and an exercise wheel to run on. If you simply stop making payments on your debts, you could lose your house, your car, and almost everything you own, even though bankruptcy protection laws are in place to give you a way to avoid the worst possible outcomes.

Filing for bankruptcy protection is only one of the ways that you can get debt relief without repaying every penny when it becomes evident that repaying the face value of your debt is beyond your means. If your debts are getting out of control and you want to consider other options besides simply handing over your entire paycheck to creditors month after month, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

First, Figure Out How Much You Owe

The way to tell whether you are in over your head with debts, as opposed to just feeling like you are in over your head, is to do some math and figure out how much you owe. Adding up the total balances is just part of the process. Remember that your debts accrue interest, so as you pay them down, the balance accrues new interest each month, and it is usually compound interest. For a truly sobering exercise, see how long it will take you to pay off all your debts if you only pay the minimum balance; it will probably be long enough that you will win an award for longevity if you manage to do it that way.

Too Hot for the Snowball Method or the Avalanche Method?

Most people who pay down their debts over time do it by prioritizing one debt at a time and paying as much toward it as they can afford each month until it is paid off. Economists encourage the avalanche method, where you prioritize the debt with the highest interest rate. People who are in the weeds of paying down debts encourage the snowball method, where you prioritize the debt with the smallest outstanding balance. Of course, you cannot do either until you have enough income to make more than the minimum payment on your debts.

If You Need an Intervention, Then What Kind?

If simply paying down your debts is not possible, you have some options. One option is to contact your creditors and offer to settle your debts for a lesser amount. Another is to borrow a debt consolidation loan to pay off your debts, so that your new debt has a lower interest rate. As a last resort, you can file for Chapter 7 or Chapter 13 bankruptcy protection.

Contact the Law Office of Melanie Tavare About Addressing Your Debt Problems

A debt relief lawyer can help you choose snowball, avalanche, bankruptcy, or some other solution to your debt problems. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.