Understanding Your Debt Relief Options in Illinois

Date Posted: October 11, 2023
By: Maggie Marques

Understanding your debt relief options in Illinois is essential if you are struggling with debt. You have to realize that it is not yet the end of the road for you, as debt relief programs are available for Illinois residents. Here, you’ll find some of the most common options you can choose from.

  • Debt consolidation. This option combines multiple debts into one, giving you a lower interest rate. This makes managing your debts easier as you only need to consider a single loan. Debt consolidation can be through a debt consolidation loan, a debt management plan, or a balance transfer on your credit cards.
  • Debt settlement. This is a process in which you, or a debt settlement company,  negotiate with your creditors and request them to allow you to settle your debts with less than what you owe them. This can be a viable option if you have a large amount of debt and can’t afford to pay your monthly payments. Bear in mind that applying and getting approved for debt settlement will hurt your credit score, so this option is not for everybody.
  • Credit counseling. This is a good option as you work with a credit counselor in creating a budget and developing a plan to help you pay off your debts. They can also help you negotiate with creditors to request reduced monthly payments and interest rates.
  • Bankruptcy. This legal process should be your last option. After exhausting all the other possibilities, bankruptcy will help you eliminate or reduce your debts.  You have two options:
    1. Chapter 7 – allows you to liquidate your assets and pay off your debts
    2. Chapter 13 – creates a repayment plan to pay off your debts in three to five years
Understanding your debt relief options in Illinois

Now that you know your choices, could you ensure you don’t fall into the trap of debt relief scams? Some companies promise to help you go debt-free but charge you exorbitant fees for the help they can give. So, please do your due diligence before working with a debt relief agency.

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