When debt becomes a serious obstacle to everyday life, it can feel overwhelming, shameful, and hopeless. And when fears about the future take over, people can become extremely susceptible to the temptations of easy solutions to their problems. Like the quick fixes that TV commercials or online banners may offer. Fast, easy, you can’t be turned away, and so on. Peace of mind is offered along with money or plans to help ease your debt situation.
Well, the expression “if it seems too good to be true, it isn’t” definitely applies here. Because many of the easy fixes offered have hidden costs and traps that can actually make a debtor’s situation much worse. A recent article in U. S. News & World Report addresses some of these traps:
- Borrowing money from a 401k account. If you withdraw money earlier than what the law sets as appropriate, you will face IRS penalties.
- Entering into a payday loan arrangement. You will, of course, have to pay back the loan and the interest on the loan – and now you have incurred another debt!
- Turning to a debt consolidation service. These are companies that are not helping you out of the goodness of their hearts – their fees can be high and ongoing, as can interest rates. And if you consolidate your debt by means of a home equity loan or line of credit, you could face losing your home to foreclosure if, again, you are not able to meet your financial obligations.
However intimidating your debt problem might seem, there is no reason to think you have nowhere to turn for help. Your first move should be to talk to an experienced, knowledgeable bankruptcy attorney at Zachary Law Group. We can answer your questions, and together, discuss your options regarding your debt situation, and which ones might provide the best outcome for you. In fact, we offer a FREE 30-minute case evaluation. So don’t lose hope about how to approach your debt situation. Let us get to work on your behalf, to “Zach-It!” All you have to do is pick up the phone and contact us at 1-855-Zach-law.