At Pinnacle Debt Solutions, we want you to be familiar with all of the options available to you. Below is a brief outline of your choices. Read each option carefully in order to choose the right solution for you.

Do Nothing

Your current debt situation is only going to get worse and intensify. As your debt increases with compounding late fees and interest, harassing phone calls from collectors and threatening letters from lawyers will increase as well. Next, you will need to file a judgment with the possibility of bank levy or wage garnishment. Remember, collectors work for commission based on how much money they collect from you and will go to great means to collect your debt.

Bankruptcy

Until recently, citizens could file for Chapter 7 Bankruptcy, easily walking away from unsecured debt with no obligation to pay. However, this law has since been changed and abandoning 100% of your debt through bankruptcy is impossible. Even if your bankruptcy is approved by the court, you will be liable to pay back a portion of your debt. Furthermore, a bankruptcy remains on your credit report for 10 years!

Consumer Credit Counseling

Many people are lured in by Consumer Credit Counseling (CCC), unaware that most CCC companies are 100% financed by credit companies. A CCC company backed by a credit company is not going to have your best interests at heart. They may be able to make some short term changes, such as lowering your interest rate or reducing your late fees, but over the next several years you will be obligated to pay back your entire balance. Additionally, your use of a CCC will negatively affect your credit and show up on your credit report. This option is almost as bad as bankruptcy.