One thing that a bankruptcy lawyer, debt settlement guy and a debt consolidation agent can all agree upon is that the risks of not doing anything are more terrible than you think. My firm does all of these things and we are constantly telling people, even if you don’t choose us, just don’t do nothing. It is the worst.
Imagine that you owe $20,000 of debt on credit cards and you realize you just can’t make a payment (many of my clients owe much more, even hundreds of thousands and millions of dollars).
If you ignore the problem for 1 year, with compound interest you will owe close to $30,000. If you ignore the problem for 2 years, you will owe close to $40,000.
If you just make minimum payments for a year or two it is not much better. Your balance might not grow, but you will be paying thousands of dollars and going nowhere.
Of course if you are missing payments, you will be sued, garnished and have your bank accounts frozen.
An interesting thing is that credit score is like a bone. If a healthy bone breaks, it recovers much faster. If you have good credit and realize that you can’t pay your debt, and file bankruptcy right away, your credit will recover much faster than if you miss payments for six months and file bankruptcy.
Why? Because bankruptcy is better than bankruptcy + missed payments. Everything counts!
But that is not the biggest problem with doing nothing.
The biggest problem is opportunity cost.
Opportunity Cost is the opportunity and investment you COULD have done if you were not paying your minimum payments, or ignoring your debts.
For the year you struggled, you could have had zero stress if you had dealt with the problem. That is your health, possibly years of your life. Here are some other things that people miss while they are wrestling with debt and not getting help.
-More time with family
-More energy to move forward and make money!
For the money you paid in a hopeless effort to climb out of debt (probably thousands of dollars) you could have:
-advanced your skills with education,
-started a college fund for your child,
-taken much needed vacation!!
Just the stress factor of the weight of an unmanageable debt is too much to bear.
Please, do something. Call any of the Waltzer Law Group attorneys for a free consultation. You will immediately feel better.