Many middle-income North Carolinians in the Tar Heel State find themselves squeezed between low salaries, unmanageable credit card debt, and increasing prices. Expenses like existing medical debt or an expensive car repair can easily upend people’s budgets and lead them to debt.

North Carolina residents from Charlotte to Raleigh and from coastal communities to mountain towns often face overwhelming debt, whether stemming from Carolina’s medical expenses, economic hardship, business setbacks, or personal challenges. Accumulation of debt of individuals can damage their financial health and well-being. But the good news is that eligible North Carolinians have access to several debt relief strategies to restore their financial stability and peace of mind.

If you have debt dating back some years, you need to find the funds to help you get through. Some solutions provide quick relief but may impact a person’s credit standing. Others offer a more gradual approach to financial recovery. Each option comes with benefits and potential drawbacks. Only an expert debt relief professional like ClearOne can give you all your options and match them to your financial situation and long-term financial aspirations.

Debt relief in the state of North Carolina starts with an assessment of your current situation, including your income, expenses, types of debt, and future financial goals. Remember that what works for one North Carolina resident may not be the best solution for another, which is why you need to find debt relief with a professional who will help you understand all available options before committing to a specific path.

Debt Management Plan

A debt management plan (DMP) partners you with a credit counseling organization to help you curb aggressive debt and debt payments.

These debt relief programs negotiate with your creditors to potentially lower interest rates and waive late fees. The main point of a DMP is for you to make a monthly payment, which your credit counseling organization uses to repay your creditors according to the DMP agreement.

Your debt relief program will simplify your debt repayment process but also requires a commitment of three to five years. A North Carolina debt management plan doesn't reduce the principal amount you owe, and your original creditors must also agree to participate in the program for it to be effective.

Professional Credit Counseling

North Carolina offers certified relief and debt credit counseling services that provide professional financial guidance. These counselors help analyze your financial situation and suggest potential solutions. They help you assess how much you earn and how much you spend. Once you have a clear picture of your finances, credit counseling tries to find enough financial room for applying debt relief policies.

Credit counseling provides helpful advice on finance management and how to discipline your spending. However, it may not offer immediate relief from pressing debt concerns. The idea is that you should focus on education and planning rather than direct debt reduction before taking any action.

Debt Consolidation

Consolidation rolls multiple debts into a single loan. If you have credit cards that are overdue or unpaid bills including the burden of medical bills and unsecured loans, you can roll them into a consolidation loan. A debt consolidation loan is used to pay off all your existing debts, and you only have to pay the one loan.

Debt consolidation loans can simplify your monthly payments and potentially lower excessive interest rates, especially on credit card interest, which tends to be high. Debt consolidation doesn’t reduce or eliminate your debt but restructures it. You may qualify if you have sufficient income and a good credit score.

Debt Settlement

Among other debt mitigation options, another possibility for North Carolina debt relief is debt settlement.

The philosophy behind this program is that borrowers can’t repay the full amount of their debt and need part of their debt reduced. This approach aims at a 25% to 50% debt reduction, so you only have to pay off the rest.

Debt settlement begins with a debt settlement company like ClearOne, which negotiates with your creditors. We present your current financial situation to your creditors and negotiate for a reduction of the debt balance. The negotiation stage can take up to four years, during which time you make monthly payments to a dedicated program savings account.

Once negotiations have been successful, your creditors agree to a reduction of the debt balance. The amount of money in your savings account is used to repay the remainder of the debt. At the end of the debt settlement process, you are debt-free.

Debt settlement negatively affects your credit rating and score and stays on your credit history for up to 7 years. The program works particularly well with credit card debt, personal loans, and other unsecured obligations without requiring any collateral.

Bankruptcy

When your debt is overwhelming, and there is no reasonable way to repay it, you can file for bankruptcy.

If you, as a North Carolina resident, face financial hardship, you can file for bankruptcy protection through Chapter 7 or Chapter 13 filings.

Chapter 7, known as liquidation bankruptcy, eliminates qualifying unsecured debts within 4-6 months and requires passing North Carolina's means test to determine eligibility. Part of the settlement might require you to sell eligible assets, but there are exceptions.

Chapter 13 establishes a structured repayment plan lasting 3-5 years. You can keep your property while repaying your debt.

Both types of bankruptcy carry implications for your financial future. A bankruptcy filing impacts your credit report for 7-10 years, may affect employment prospects, and often requires paying legal fees.

While bankruptcy provides legal protection from creditors, its impact is such that it should only be considered a solution of last resort when other debt-relief options in North Carolina have been exhausted.

ClearOne for North Carolina Debt Relief

There are many debt relief options. With the right support and professional guidance, you can choose the option that best suits your financial situation.

Debt counseling and debt management are great ways to learn about managing your finances and being responsible with money matters. Debt consolidation makes your finances easier to follow and could decrease the interest charges. But it is debt settlement that can reduce the amount of debt you own and give you the financial respite you need.

The best way to handle debt settlement is with a professional company like ClearOne. Our debt specialists are experts, professionals, and knowledgeable. If you are struggling with significant amounts of debt in North Carolina and looking for relief from existing debt, contact ClearOne and assess your debt relief options.

The best way forward is to acknowledge that you need some type of debt relief. Take time to evaluate your total debt and review your budget. If you can afford to repay your debt, plan ahead. If your debt is overwhelming, then contact ClearOne in North Carolina to see how debt settlement can give you financial peace of mind.