Texas residents may experience financial problems from time to time. However, individuals who are consistently making late payments or have not gotten around to creating a budget may benefit from a talk with a credit counselor so that they can learn more about their options when it comes to overcoming financial issues.
Those who are afraid to pick up the phone or get their mail for fear of creditor calls or letters may benefit from a credit counselor. These professionals may make debtors aware of their rights under the Fair Debt Collection Practices Act that limits when and where debt collectors may try to contact them. When an individual understands his or her rights, it may make it easier to focus on making money and paying down debt.
A talk with a credit counselor may also be beneficial for those who are unable to contribute to their retirement accounts. An individual who has 35 years to save for retirement needs to save only $400 at a 7 percent return to have a final balance of $709,985. However, individuals who only save for 15 years would need to save $2,200 a month to reach that amount.
Those who wish to reorganize or eliminate debt may accomplish that goal by filing for bankruptcy. Filing for Chapter 7 protection may allow individuals to have some unsecured debts discharged without paying the entire balance owed. In some cases, a debtor may owe nothing if he or she has insufficient assets to liquidate. An attorney may be able to further explain the benefits of such a decision such as obtaining a stay from collection actions while the bankruptcy case is pending.