Navigating the Path to Financial Freedom: Tennessee’s Debt Relief

While debt is generally good for the economy, people going bankrupt because they can’t get out of debt is always a negative occurrence. So, it would be best if you did something to get out of this look as soon as possible.

It is in your state’s best interest that you, as a taxpayer and a productive member of society, get out of debt as soon and as effectively as possible. This is why some states have debt relief programs. These often consist of things like:

  • Financial counseling
  • Mediation and negotiation
  • Debt management plans

Here’s what you should learn about Tennessee’s debt relief and how to benefit from it.

Three solutions to your problem

Before we even start, mentioning that three forms of the Tennessee debt solution will lead you to financial freedom is important.

  • Debt consolidation: Debt consolidation joins all your debts into one. This means that the amount of debt remains the same, but instead of several payments, you get a single larger one. This means that it’s harder to miss a credit payment (which improves your credit score), and it may significantly reduce your ARP.
  • Debt settlement: Sometimes, you can directly negotiate with your creditor to settle for less than the full amount owed. Still, you need to negotiate the right amount for this to work. You also need to offer a justification. For instance, if you’re going through a financial hardship, you need to be able to prove it. For a creditor, this may be the least bad solution.
  • Bankruptcy: This legal process will give you a fresh start, but it’s not without drawbacks. In the past, many success stories started with a bankruptcy or two, so this is nothing to be ashamed of. Dealing with this the right way is not simple, and you may need some administrative and financial assistance to do this right.

The key thing is that you find the right assistance and make sure that they’re operating in your state.

What caused your financial problems?

First of all, you need to figure out where you qualify. For this to work, you must fill out a brief questionnaire. Here, you’ll be asked about what caused or contributed to your financial difficulties, and you’ll have the option to choose from the following:

  • Overwhelming debts and bills
  • Income reduction or work situation
  • Medical bills and expenses
  • Personal or family difficulties
  • Other

These questions are important because they help the organization better understand the conditions that led to this situation. This is important for the future economic development of the community.

Which debts do you need relief from?

The next step requires you to describe the type of debts you face. So, in the next question, you’ll be asked to fill in the type of debt. It’s important to point out that, in this stage, you can select multiple answers. Just make sure you select those causing difficulty, not those that are bothersome or that you would rather be without.

The boxes available for you to check here are:

  • Credit cards
  • Student loans
  • Tax debts
  • Other debts

Regarding credit cards, you must understand that this category also covers many other financial vessels. Here, you also have store cards, balance transfer cards, collections, personal loans, and medical debt.

What’s your homeownership status?

Another important piece of data is your homeownership status. There’s a difference between owning a home, renting a home, or having another arrangement. Remember that rent is usually the biggest monthly expense, but the same goes for mortgages. Then again, property taxes aren’t to be underestimated either.

Get your estimate

Once you’ve considered everything, filled in the questionnaires, or informed your financial advisor of your situation, the next step is to get some actual numbers.

  • First, you need to estimate the amount of your debt. Remember that, in this stage, you don’t have to give the right amount or gather bills/receipts, etc.
  • Second, you need to see your qualifying debts.
  • Third, you’ll get to see your best relief options. This goes into such detail that you’ll be able to see your monthly savings.

While each of these steps sounds simple, it’s not something that you’ll be able to accurately handle on your own. Therefore, you need to find a specialized program right away.

Wrap up

Debt is not just a financial burden; it’s also a huge psychological pressure. It may make you postpone your lifelong goals, lose your invaluable assets and heirlooms, and even ruin your life. That is if you let it do so. Fortunately, there are a lot of different mechanics that you could employ to get out of debt. The best course of action is to look at the resources you have within your own state, reassess your current situation, and reach out to specialists. You need help, and the sooner you get it, the better.