When it comes to managing your finances, finding yourself overwhelmed with credit cards or loan debt can be difficult. Whether you were living within your means and your income changed or you inadvertently committed to payments you just can't afford, it's important that you address it right away to resolve the problem. The sooner you resolve the situation, the less stress you will feel, and the less risk you'll have of needing to file for bankruptcy. That's why you should talk with a debt management lawyer about creating a repayment plan. Here's a look at what you need to know.

Have You Talked With A Debt Management Lawyer?

When you're financially struggling and can't meet your debt repayments, it can feel overwhelming to you when you are trying to negotiate the situation with your creditors. In fact, you might not even know where to start when it comes to trying to settle things out.

Contacting a debt management lawyer is a great way to address the problem head-on, understand your rights as a consumer, and take the pressure off of yourself when it comes to negotiations and reorganization of your debt.

The lawyer will help you to assess your financial situation, reach out to your creditors, and settle your debts in payments that you can afford.

Can You Afford Repayment?

The first, and most important, consideration is whether you can actually afford the repayment. If you can afford smaller payments each month, but just can't make the current minimum payments, you're in a perfect position to consider a debt management repayment plan.

However, if your financial situation has you in a position where you can't afford to make any payments on your debts, you should instead be considering bankruptcy.

It's in your best interest to thoroughly evaluate your current income and expenses, looking for any areas where you can reduce your spending to redirect funds to your debts. That way, you can renegotiate your payments into a plan that you can afford.

Are Your Creditors Calling Frequently?

One thing you will find with outstanding debts is that creditors will often make frequent calls trying to recover their money. The further behind you are, the more calls you're likely to get. If those phone calls are overwhelming, it's definitely time to consider talking with a debt management lawyer, or a firm like Havner Law Firm, to renegotiate your debts and adjust your payments so that they are more affordable.