Tennessee residents who struggle with debt might wonder what other repayment options exist. In addition to credit counseling, one could also enlist the services of a debt negotiation firm. These debt companies attempt to help with an individual’s debt obligation by settling, renegotiating or reducing the owed amount to create a new arrangement between creditors and a consumer. Typically, this process may allow one to pay off a debt within 24-48 months when successful, and it might reduce a debt by half before fees.

When working with a debt negotiation company, one is not expected to pay upfront fees. The Federal Trade Commission enacted rules in 2010 that stipulate that a debtor must agree to a proposed solution before owing fees to the settlement company.

Using a debt collection agency could offer some benefits but may not solve all a consumer’s problems. Negotiation does not apply for child support, taxes, student loans or alimony. When trying to make an arrangement with a creditor, accounts can be in delinquency while racking up fees and interest. This means one’s credit score may be hurt.

Chapter 13 bankruptcy could be another option when struggling with credit card debt. This typically allows those who earn an income to pay off creditors partially or fully within a period of three to five years. This form of bankruptcy is appealing because one may be able to protect important assets like a house or vehicle. One might wish to consult an attorney when evaluating different debt repayment strategies. A lawyer who focuses on bankruptcy may be able to assist a client with the filing process.