How Debt can Impact Your Mental Health

Debt impacts almost everyone to some degree. A mortgage, a car loan, student loans, credit card debt, medical expenses—once everything is added up, debt can be overwhelming for some people. Unmanageable debt has obvious financial impacts, but owing money can have a major negative effect on your mental health.

In a 2017 survey by the American Psychological Association, 62% of Americans indicated money as a “significant stressor” in their lives. Financial uncertainty, overwhelming debt, or a major economic event can increase stress and cause many mental and emotional side effects, like: guilt, shame, denial, resentment, anxiety, anger, fear, insomnia, panic attacks, substance abuse, high blood pressure, and even suicide. There are many different circumstances that can lead to debt-relate stress. Divorce, illness, and a change in employment status are all factors that compound mental health issues related to debt. The bottom line is that not having enough money to pay bills can significantly impact mental and emotional wellbeing.

Whatever the cause for your debt-related stress, here are 6 ways to manage your stress and work on creating a healthier financial life:

1. Admit the Problem

Sometimes, just admitting to yourself that you have a debt problem can be powerful. It can be easy for people struggling with anxiety and depression to ignore the root cause of their mental and emotional turmoil. Ignoring the underlying issue will only make it harder for you to get the help you need to tackle your debt and, in turn, improve your mental health.

2. Get Professional Support

If your mental health symptoms are impacting your ability to function as you want to, it may be time to seek the help of a qualified professional. Especially if you are experiencing anxiety or depression, it is important to talk to someone about your debt-related stress. Be open and honest with a therapist about your financial situation.

3. Get Your Finances in Order

Face your debt head on. Gather all your financial information together in one place so you can get a clear picture of your debt situation. This can seem overwhelming at first, but once you know how much you owe, you can come up with a plan to work on paying off the debt. Knowing that you have a clear understanding of what you need to do, your stress level will start to diminish.

4. Set Realistic Goals

Every debt situation will be completely different from the next. Your goals for getting out of debt should be based on how much debt you owe and your capacity to reasonably make payments. Achieving a small but realistic goal will encourage you to continue towards bigger goals. Paying down debt can be a long process, so establishing realistic expectations for yourself can improve your outlook as you pay down your debt.

5. Find an Accountability Buddy

People facing a lot of debt can feel isolated from everyone around them. The shame and embarrassment many people associate with debt can cause them to closet their debt issues. Find someone you can trust—a friend, family member, or a debt support group—and be open with them about your debt issues. Ask them to help hold you accountable for reaching your debt repayment goals. Talking about your debt issues can be a huge stress reliever.

6. Work with a Debt Relief Professional

Seeking help from an experienced and trusted NJ debt relief attorney is an excellent step towards financial health and peace of mind. The right experts can help you assess problem areas in your finances and look for solutions fit to your needs. A debt relief attorney can even look into your terms with lenders and utility companies to negotiate for more affordable terms.

Not all debt is bad debt. The decision to take on debt can allow us to get an education, provide a home for our families, or get life-changing medical care. When debt becomes unmanageable, it is not the end of the road. Veitengruber Law provides full-service debt relief solutions that are tailored to each client’s unique situation. Our team has years of experience restoring financial health through debt negotiation. We know how heavily debt can weigh on the hearts and minds of our clients, which is just one of the myriad of reasons why we do what we do!

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10 Purchases You Should Never Make with a Credit Card

Credit cards can be powerful financial tools. They offer convenience, the opportunity to build credit, and can act as a loan to buy bigger ticket items. But when credit cards are not used wisely, they can cause a great deal of financial trouble. Overspending can lead to unmanageable credit card debt. To avoid out of control credit card debt, here are 10 things you should never purchase or pay for with a credit card.

1. Mortgage Payments

Most mortgage companies will not allow you to make direct payments with a credit card. If you do find a way to circumvent the rules of your mortgage servicer to make your payment with a credit card, you are asking for trouble. If you cannot pay off your credit card balance in full before your next payment is due, you will be paying for interest on a substantial balance. This added interest, on top of the interest you already pay on your mortgage, means you will end up paying much more for your mortgage payment than you should be.

2. Household Expenses

There are some arguments that favor paying for household expenses with a credit card. These arguments point out the convenience of online payments and credit card rewards. But the risk of paying your monthly home bills with a credit card is that you can easily lose track of your balance. If you go over your credit limit, you could face fees and heavy interest rates, not to mention potential late fees if your card is declined and you cannot pay your bill. Linking your online accounts to your debit card and checking account offers the same ease of payment without the added risks.

3. Medical Bills

The cost of medical care is expensive and many people struggle to pay off their medical debt. Paying for medical expenses with a credit card only makes this situation worse. If you find you cannot pay a medical bill immediately, get in touch with your medical care provider to see if they can set up a payment plan for you. Payment plans through the hospital will likely charge you much less in interest than a credit card issuer.

4. College Tuition

Most schools charge a 2-3% convenience fee for charging payments. If you cannot pay off the bill before interest accrues, you will end up paying even more. If you need help paying your tuition, the interest for student loans are often much lower than for credit cards. Talk to your financial aid department about work study opportunities, grants, scholarships, and other ways that can help you pay for college costs.

5. Wedding Expenses

Big, lavish, Pinterest-worthy weddings are all the rage right now. The average wedding costs $35,000.00. It can be tempting to start charging all your expenses to a credit card to pull off the wedding of your dreams. But unless your dreams also include crippling credit card debt, this is the worst way to budget your wedding. When you’re paying with a credit card, it can be easy to lose track of your budget and spend way more money in interest. It is better to save money ahead of time and start planning once you have enough money put away.

6. Business Startup Expenses

Paying for business expenses or startup costs with your personal credit card can be a recipe for disaster for your new business. It can take years for a business to become profitable, which means you could end up paying high interest on debt you cannot afford to pay back. Instead, opt for a small business loan which tends to have a lower interest rate. Looking for investors can also give you the cash you need up front to finance your startup.

7. Taxes

While you can pay your taxes with a credit card, you will end up paying more money which does not make good financial sense. The payment processing services that handle federal and state tax payments charge between 2-3% for using a credit card on top of a $2-$3 flat convenience fee. If you owe thousands in taxes, your processing fees can really add up!

8. Down Payments

Using a credit card to cover the down payment on your house, your car, or any other big purchase that comes with a loan is a good sign you can’t actually afford the loan. By charging the down payment, you are adding a large cost in the form of interest rates to the sales price of your item. If you find yourself scrounging around for the money for a down payment, you are better off waiting and saving.

9. Big Ticket Items You Can’t Really Afford

A good rule of thumb for credit cards is if you can’t pay it off in full by the end of the month, don’t pay for it with a credit card. This goes for cars, appliances, furniture, equipment, and any other big purchase you can’t afford outright. The interest you will accrue carrying this balance statement to statement will make these purchases more expensive in the long run. If you need to finance these kinds of purchases, look into financing options directly from the seller or loans that will allow you to include these purchases in your monthly budget.

10. Small Indulgences

These are the things you don’t really think about: your morning coffee, a sandwich for lunch, a few drinks with friends. It is convenient to just swipe your card, but without being super careful about your spending, this can lead to an out of control balance. Unless you are taking advantage of some kind of credit card rewards, it is best to pay for these items in cash. This will help you stick to a budget and spend more mindfully.

Should I Use My Emergency Fund to Pay Off Debt?

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Most financial advisors recommend having at least three to six months savings in an emergency fund at any given time. An emergency fund can be helpful in getting through the expensive curveballs life throws your way. Unexpected car maintenance, the sudden loss of employment, medical emergencies, and unforeseen home repairs are examples of events for which you may have to use your emergency fund. Sometimes, though, it can be tempting to use this money for expenses that aren’t necessarily true emergencies. If you have a big pile of debt, it may seem like using your emergency fund to pay down the balance is a good idea. Here are the reasons why you shouldn’t use your emergency fund to pay down debt, and a few exceptions where you might want to consider it.

The simple reason not to pay off your debts with emergency fund money is that most debt is not an emergency. This fund is specifically meant to cover unforeseen costs and expensive emergencies. Cars loans, student loans, mortgages, and personal loans all tend to have set, predetermined monthly payments. That means this debt is controlled and you know what to expect every month. As long as you can meet those monthly payments and expect to be able to continue to pay on time, there is no reason to dip into your emergency fund. Paying off your debt over the agreed upon timeline is not, after all, an emergency.

While it may seem like you have all this debt looming over your head, you have to remember that your emergency fund is specifically there to handle the unexpected. Your monthly car payment is not going to have the same impact on your financial stability as sudden and major car repairs from an accident. Where will you be if you use your emergency fund to pay off your debts only to find yourself dealing with a major financial emergency a short time later? Since you never know when a mishap like this will occur, it is best to save the emergency fund for actual emergencies.

There are, however, a few exceptions. An “emergency” will change in definition from individual to individual. Having kids or pets, owning or renting your home, owning your own business, and the stability of your employment are factors that will likely impact what you consider an emergency worthy of tapping into your emergency fund. This also goes for determining whether or not your debt is an emergency. Unmanageable, high-interest credit card debt, for instance, may count as an emergency depending on your specific circumstances. If you find yourself struggling to pay your monthly bills and are facing down the consequences of late or missed credit card payments, this could be enough of a reason to dip into your emergency funds.

Before you panic and deplete your emergency fund to pay off debt, think about why you have this unmanageable debt in the first place. The reasons behind the debt can also be a determining factor in whether or not to use your emergency fund. Was the debt unavoidable or due to some unhealthy spending habits? If your unhealthy habits are behind the debt, it may not be the best idea to dip into your savings and emergency fund. Understanding the reasons behind the debt is the first step to changing those habits and avoiding similar mistakes in the future.

Even in the event that you do determine debt to be a financial emergency, it is not a good idea to completely drain your emergency fund. You are better off leaving your emergency fund alone (or continuing to build it) while you make the minimum payments required on your debt. Debt-swapping, or replacing your high-interest debt with a lower-interest option, should be considered before dipping into savings. If you are able to pay down the debt a decent amount, you could justify using a small portion of your emergency fund to finish paying off the debt, but even this should be a last resort.

When it comes down to it, emergency means emergency. Being honest with yourself about your financial situation is the first step to proper money management. It takes a lot of hard work and discipline to build up savings or an emergency fund. Don’t let that hard work go to waste! At Veitengruber Law, we can help you come up with debt solutions to stay on top of your financial situation so you don’t have to consider dipping into your savings.

How to Challenge Wage Garnishment

how to challenge wage garnishment

If you are unable to pay certain kinds of debts, creditors have the ability to seek legal recourse by taking you to court and securing a wage garnishment order against you. Wage garnishment is a court order sent directly to your employer, requiring them to withhold a specific amount of money from your paycheck to be sent to one of your creditors. The good news is you may be able to challenge the garnishment by objecting in court. Here, we explore your options when creditors start coming for your paycheck.

Before we talk about how to object to wage garnishment, it is important to note that there are federal and state rules in place to protect debtors from unfair wage garnishment practices. The amount your employer can withhold and the specific rules will be different depending on what kind of debt is in question and what your personal financial situation looks like. In New Jersey, there are specific laws in place to ensure you will have enough money to pay for your living expenses while your wages are being garnished. Creditors can only take up to 10% of your income when you earn less than 250% of the federal poverty level OR up to 25% when you earn more. Employers also cannot fire their employees for receiving a wage garnishment order.

In New Jersey, a creditor can garnish your wages only after they have sued and obtained a court judgement against you. The exception to this rule is if the creditor is collecting unpaid income taxes, child support payments, or defaulted student loans. Once your creditor has decided to sue you in an attempt to secure a judgement against you in court, you will likely receive a written notice and a hearing before your employer will start withholding money from your paychecks. This notice is called a Notice of Garnishment of Personal Earnings.

Once you receive this notice, you have to act fast. Your right to object to wage garnishment is limited and time sensitive. Depending on the debt in question, you can have between five and thirty days to bring forth a legitimate objection to the court decision. If you do not object within this time frame, your right to object to the garnishment is legally waived and your employer can begin withholding wages to send to your creditor. The garnishment letter will contain instructions on how to object, including specifics on court dates, deadlines, and expected objection formats.

If you decide to argue against wage garnishment and you receive a new hearing date to plead your case, there are a few valid legal reasons to object to the court order. Though this is a time consuming and complicated process, you still only have a limited time to present your case to the court. Some common reasons to object to wage garnishment are:

  • Federal or state limits aren’t being followed
  • You have a head of household exemption
  • Your creditor did not follow proper legal procedure
  • You are self-employed
  • The debt in question has been paid
  • You are already experiencing wage garnishment with another creditor
  • You are making payments to the creditor already
  • You have filed for bankruptcy

An experienced attorney will be able to work with you through some of the more difficult aspects of the court proceedings. They will know what the court is looking for and how what objections will work based on your specific case.

At Veitengruber Law, our experienced team will work with you to come up with a customized legal plan to meet your needs. If you are struggling with debt, it may be time for a fresh start. Our bankruptcy and debt relief legal team has years of experience working with clients to ensure a brighter financial future. We can help you explore all your options and protect your interests.

What if I Can’t Pay Back my Personal Loan?

personal loan

Personal loans, unlike student loans, mortgages, or auto loans, can be used for almost anything. If approved, you receive a lump sum that must then be paid back in monthly installments. From big purchases to home renovations to consolidating debt, a personal loan can be a useful financial tool. But sometimes, as with anything else, “life happens.” Unexpected financial difficulties like a pay cut or medical expenses can disrupt even the most carefully planned budget. When a financial set-back occurs, it can be difficult if not impossible to keep up with bills and payments. Often, it is loans and credit cards that are the first payments to be put off. What do you do if your situation has changed since being approved for a loan and you can no longer make payments on your personal loan? Today we’ll give you a few examples of steps you can take to remedy the situation.

While most people are reluctant to talk to their lender in the event of a financial set-back, this is often the best thing you can do. In fact, most lenders will respect a proactive approach to handling the situation and appreciate your dedication to paying back the loan. The sooner you make your lender aware of the problem, the more likely they are to work with you. On the other hand, simply ignoring missed payments can result in an accumulation of late fees, collection efforts, a drop in your credit score, and even default. If there is a valid reason you cannot make the payments, your lender should understand and work with you to find a mutually agreeable solution.

Once you have taken steps to make your lender aware of your situation, they may be willing to revise the terms of your loan to make monthly payments more manageable for your new financial circumstances. Lenders who are willing to negotiate will look at your expenses, other debts, and income to determine a more realistic monthly payment. So while the total principal of the loan will remain the same, payments can be made more affordable. The solution might even be as simple as changing the monthly due date of the payments to a time when it does not conflict with other bills. You may even be able to negotiate a deferment on your payment—it doesn’t hurt to ask!

If your lender does not work with you to revise the terms of your loan and is still demanding on-time payments, you will have to find different ways to make the payments. Consider areas in your budget you could cut back on, even if it is only until you’ve paid back the loan. Determine which expenses are necessities (like food, utilities, transportation to work, etc.) and which are extra. If it is possible, try selling high dollar items, like a second car. You may even consider doing side work or getting a part-time job to help offset the cost of the loan payments. Explore all of your budget-revising options to avoid missing payments.

In the event you still cannot afford to make the payments on your loan, don’t assume all hope is lost. When you’ve done all you can do to remedy your finances and you’re still struggling, it is time to reach out for professional help. At Veitengruber Law, our team of experts has years of experience dealing with difficult lenders and assisting borrowers in getting back on the right financial track. We will negotiate with lenders on your behalf to find effective solutions for real financial relief.

We understand that not every debt problem is the same and we will work diligently to come up with a customized solution for your specific situation. Bankruptcy is not the only solution to unmanageable debt, although it may be the best solution for your circumstances. Our team will perform a holistic financial analysis to help you make informed choices about your financial future.

How will my Spouse’s Debt Affect me?

When you meet someone new, finding out their credit score is typically not your go-to first date conversation starter. In the whirlwind of new romance, money matters tend to remain ignored. It is often much later in the relationship—after a couple has already become financially entwined through marriage or the sharing household bills—that financial issues come to the surface. You may be surprised to find out your spouse has accrued a substantial debt that you had no idea about. When facing this startling new information, it may be difficult to know how to move forward with your partner. Here are some tips to dealing with a spouse who has debt.

1. Hold Off On Making Judgements

In situations like this, emotions can run high. You may feel lied to or betrayed by your partner for concealing their debt. Breathe through your initial reaction. When people feel attacked they tend to shut down or become defensive. Keeping an honest, open space for communication with your spouse will allow you to move forward to fix this problem together. This also goes for making judgements about their current financial choices. If you see your spouse making consistent efforts towards paying off a debt, don’t chide them for their purchase of a new pair of shoes. Paying off debt is a process that you cannot expect your spouse to complete overnight.

Keep in mind that debt accumulates for many reasons and a past debt does not necessarily mean your partner cannot be financially responsible now. Maybe they were overzealous with their first credit card or are struggling with student loan debt. Unemployment, divorce, and medical expenses can also add up quickly. Don’t judge too harshly until you have the full picture of your spouse’s debt.

2. Get the Details

The amount of debt your spouse has makes a difference, so it is important to know the exact number they are currently working to pay off. How your partner is paying off the debt matters, too.  Is the repayment situation short term (over a year or two) or long term (5-20 years)? If it is a long term repayment plan, you can expect this debt to impact your life together for years to come. This is also the time to check your spouse’s credit report with them. This will give you the full picture of any late payments, high balances, legal judgements, or bankruptcy filings they may have.

3. Know When You’re Liable

Many people assume that once you get married, you automatically take on your spouse’s past debt. This is not true. Your credit histories will remain separate for any debts or financial troubles that occurred before your marriage. New Jersey is a common law state, meaning that even after marriage you’re only responsible for debt accrued in your name.

This changes once you open joint accounts, apply for joint credit, cosign on loans, or include your spouse on an account as an authorized user. These actions will show up on your credit report and you will be responsible for the debt. If at any point your spouse cannot make payments, even if it is on debt they personally accrued (after the date of your marriage), you will be responsible for the full payment of the debt.

4. Decide How You’ll Make Purchases Going Forward

Your spouse’s debt, and its impact on their credit score, may make it difficult for you to make big purchases together for the duration of the repayment period. Depending on how much debt they have and how low their credit score is, you may be looking at taking on the full weight of big purchases for awhile. You may be hesitant to apply for joint credit, cosign, or add them as an authorized user on your accounts. Have an honest conversation about how you will make big purchases together going forward.

At Veitengruber Law, we know the stress of large debt can create a lasting impact on marriages and families. Our experienced legal team can help you sort through the debts and create a future path that looks bright. Our comprehensive approach to resolving debt problems can help relieve the stress on you and your spouse.

 

 

Common Causes of Debt and How to Avoid Them

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Almost every household in the USA carries at least some debt. The simple explanation for debt is that you spend more money than you make, but there may be some less obvious factors that have contributed to your accumulation of debt. Taking the time to think about how you got into debt could help you avoid similar mistakes in the future. These are 6 of the most common causes of debt and how to avoid them:

1. Loss of Income

The sudden loss of a steady income can quickly lead to debt and financial troubles. You may be laid off, fired, or experience a decline in your personal business. You may need to take time away from work or leave the workforce completely to care for a child, an aging family member, or attend to your personal health needs. After the sudden loss of income, you may become overwhelmed by everyday expenses, and debt can easily build up.

One of the best ways to defend against this kind of debt is to build an emergency fund. In times of financial health, live below your means and put any extra money into savings. An emergency fund should be able to cover at least six months of expenses, so even if your income declines unexpectedly you will have the financial support you need to get back on your feet

2Medical Expenses

As one of the leading causes of bankruptcy in America, medical costs can easily push someone into debt totaling tens of thousands of dollars or more. With expensive treatments and high premiums, even those with health insurance can struggle with medical debt. When facing medical expenses, people will turn to savings or even credit cards to pay for their care. Since you can never predict what your health will be like in the future, it is best to take precautions now to prevent medical debt. Enroll in a good health insurance program. Even if paying for health insurance will cost you more now, trying to pay out of pocket for a medical emergency in the future could be financially devastating. You can also plan to include potential medical expenses in your emergency fund.

3. Expanding Families

The cost of raising a child is estimated to be around $250,000.00 from birth all the way through to adulthood. So, even if you feel you have plenty of extra money, having a kid can quickly change that. The new financial responsibility of raising a child can also be affected by the need for childcare. Paying for childcare can be so expensive that it can be cost prohibitive, causing some cases families to live on one income so one parent can stay home to care for the child(ren).

Whether you are a single-income or multiple-income home, the expenses of raising a child can quickly add up. Start saving before you have kids and prioritize saving throughout your child’s life. Prepare yourself by investigating the best childcare options for your specific financial situation before having children. Ideally, wait to have kids until your income will support adding a little one into the mix.

4. Divorce

A lot of financial changes take place after a divorce. With each person going from two incomes to one income and the added expenses of alimony, child support and legal fees, getting divorced can be very expensive. When facing divorce, it is important for couples to look critically at the financial impact of their decisions.

Often, the more amicable the split, the less likely it is that the divorce will have disastrous financial consequences for both people. If couples can agree to work together financially through a divorce, they can lower their legal costs and normally find more mutually agreeable results. Working through an arbitrator or divorce mediator can further save money on legal fees that accumulate when working within the court system. By working together, couples can come up with a solution that is financially best for everyone involved.

5. College Costs

For many young people today, crippling college debt has become the norm. Student loans add up quickly and sometimes recent graduates are not prepared to make the loan payments they accumulated getting their degree.

As a parent, you can help your future college graduate by starting to save for their college education as soon as possible. If you are student facing the expense of college alone, there are ways to reduce your student loan debts. Make smart choices about the schools you attend. Private schools may have the name or the prestige you think you need, but remember they offer the same degree that you will be getting from a state school. You also don’t have to start college right after high school or go to college full time. Working before and during college is a great way to offset expenses.

6. Lack of Insurance

Both in the case of individuals and businesses, not having adequate insurance can send people scrambling during an emergency. Home owners insurance, car insurance, and medical insurance can all make a huge difference when disaster strikes. Insurance is an essential aspect of financial planning. Take the time to understand your insurance policy. What does it cover? Would that coverage be enough to get you through an emergency? Being uninsured or under-insured can land you in huge debt if you are faced with a sudden unfortunate event.

 

It can be easy to fall into debt. Taking the time now to analyze your financial situation and plan for the future can reduce your risk of falling into the above debt traps. No two people have the same debt problem. At Veitengruber Law, we offer individualized debt management services to help you get back to financial health and security if you have occurred debt that you can’t seem to shake. We can also help you set up a plan to avoid accruing debt in the first place. Call us today at 732-852-7295 for your free debt management consultation!

Why We Stand Out as a NJ Real Estate & Debt Relief Law Firm

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At Veitengruber Law, we strive to provide service that is above and beyond the standard. We understand that there is no one size fits all solution to financial and legal issues. Our experienced team manages every single case on an individualized basis, providing proven solutions from years of experience managing cases. Our goal is to help our clients achieve financial security with a customized plan specific to their needs. As a result of our practices, our clients are able to move forward to make stronger financial choices confidently and independently.

George established Veitengruber Law to help families and individuals in need of financial help. During his seven years of experience working as a Senior Associate for a Monmouth County debt resolution firm, George saw first-hand the toll overwhelming debt can have. When he opened his solo practice in 2010, he decided to use his vast legal and courtroom experience to help clients achieve their financial goals. Beyond just providing legal expertise and defense, George and his team stick with clients to help them learn valuable financial lessons. This holistic approach allows George to help clients even after their case has been settled, allowing them to look forward to a brighter financial future.

Veitengruber Law maintains a concentrated legal focus, allowing George to bring the full strength of his experience and success to the table for every single client. As a full-service real estate and debt relief solutions practice, we can provide unsurpassed services to our clients.

The Veitengruber Law team has years of experience in all aspects of real estate transactions from contract review to real estate presentation and closing services. Your home is typically the largest investment you will ever make. NJ real estate transactions can involve highly detailed paperwork and complex contracts. George and his team can work with you during sales, purchasing, inspections, liens, titles, and contracts so you can feel confident in your real estate transactions.

Veitengruber Law saves an average of 60 families from foreclosure eviction each year. George is highly experienced in the wide variety of legal strategies and foreclosure defenses to help keep our clients in their homes. We analyze our client’s specific circumstances and provide expert guidance on the best foreclosure alternative case-by-case. Our team will explain your options in plain language so you can understand all of your options.

We are also experienced in providing proven debt-relief solutions tailored to every situation. Our team has significant experience negotiating with difficult lenders, creditors, and other financial institutions. Our insight into the way credit card companies work informs the effective solutions we can offer our clients. Your individual debt solution may involve a mortgage modification, loan refinancing, settling with a creditor, or simply creating a good budget to follow. We make sure our debt relief solutions are realistic, appropriate, and unique to each client.

While we know bankruptcy is not a solution for every situation, we work against the myth that bankruptcy is the end of the line. Time and again, we have helped our clients take bankruptcy as a first step back to financial health. Not only can bankruptcy save your home as an automatic stay to halt a foreclosure, it can be an excellent tool to get out from under unmanageable debt. Our team will only suggest bankruptcy if it is truly the best solution for you.

Beyond our expertise and proven success, we offer an approachable experience for our clients. We understand how much stress and anxiety these heavy financial decisions can cause—and how intimidating it can be to reach out to a lawyer for help. Our goal is to make our clients as comfortable as possible throughout the entire process. We want to understand your goals and help you find comprehensive solutions to your problems. Contact us today for a free consultation!

Getting Nowhere with Your Debts? You Need a Debt Resolution Plan!

Debt Resolution

If you find yourself burdened with unmanageable credit card debt and struggling to make minimum payments each month, Veitengruber Law’s debt resolution services may be the perfect option for you. Following a debt resolution plan can be an effective strategy for anyone who has experienced a financial hardship like divorce, job loss, a significant reduction in household income, or medical debt resulting from serious accident or illness. Our team is experienced in debt management solutions and creating effective debt resolution plans.

George Veitengruber is an attorney with a strong focus on finances. All of our team members understand the personal heartache people can experience from overwhelming debt. We work toward real and appropriate solutions that provide relief and peace of mind for our clients. We will sit down with you to review your income and expenses and evaluate your debt to get a blueprint of your finances. No two people have the same debt issues and there is no one-size-fits-all solution to debt issues. We provide individualized advice for each client. Bankruptcy is not the only option for people seeking debt relief, and we will never push you into bankruptcy if that is not your best option.

Debt resolution can be an excellent alternative to bankruptcy or debt settlement. After we sit down with you to get a clear understanding of your financial situation, we can create a comprehensive budget that will allow you to get a handle on your debt. We will also use that budget to negotiate with creditors on your behalf. We will work to settle on new payment terms with each individual creditor, negotiating to eliminate penalties, reduce interest rates, and secure lowered monthly payments. The goal of a debt resolution plan is to resolve your debts for less than what you owe on your outstanding balance and to create a payment plan you can more easily manage.

There are some major incentives to working with an attorney to create a debt resolution plan over other debt settlement services or trying to manage debt alone. While your overall score will still likely drop at least slightly, our debt resolution services have the potential to limit damage to your credit score. Because you can continue to pay creditors throughout the negotiation process, there is little opportunity for late payments to further decrease your credit score. Veitengruber Law can also negotiate with creditors in how they report the payment of the debt, working with creditors to ensure your credit score is impacted as minimally as possible.

Another major benefit to debt resolution is the support you get from a qualified, experienced attorney. Our legal team can use their knowledge of the financial world to negotiate on your behalf. Creditors are more likely to take an attorney seriously and an attorney can assure your creditors are working in your best interest. We know all the tricks of the trade and how to work the situation in your favor. When you work with us, you know you will receive the quality know-how and financial expertise you deserve. Our advanced knowledge and years of experience also means less time spent negotiating with creditors, ensuring that you will start paying off debt sooner rather than later.

Don’t wait to start working on a solution to your debt troubles. Call us today to arrange a free consultation with a debt negotiation lawyer. Our comprehensive approach to debt resolution will allow you to breathe easier again. We can work with you to create an individualized debt resolution plan that works for you, helping you tackle unmanageable debt and avoid further financial troubles.

Reduce Debt NOW Rather than Later and Save Thousands

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The average American household is leveraged with $137,000 of debt. That’s a crushing number. No matter what your debt looks like, you can (and should) take steps now to eliminate years of payments – potentially saving you thousands of dollars. Following are four of the most common kinds of debt weighing Americans down, along with debt-reduction tips for each type of debt.

Mortgage:

A mortgage is one of the largest debts most people will take on in a lifetime. With a minimum down payment, you will pay thousands of dollars in mortgage insurance (PMI), which is basically wasted money. If you can’t put down 20% to avoid PMI, you should refinance as soon as your home value increases enough that your equity is the equivalent of 20% or more.

Pay attention to comparable home values in your neighborhood and refinance your mortgage as long as the interest rate is low. If you began with a 30-year mortgage, try to refinance to a shorter term. You will pay much less interest over the course of the loan. Choose a 20 or 15-year mortgage and spend your later years without a mortgage payment!

Another effective way to reduce mortgage debt is by making bi-weekly payments instead of monthly payments. This means you will make 13 payments per year instead of 12 and most people won’t even notice the difference.

If you are unable to pay your mortgage or are behind on payments, address it before it gets out of control and you lose your home.


Student Loans:

One of the worst kinds of debt is student loan debt. It will often survive even if you declare bankruptcy. Your wages can even be garnished if you fail to pay your student loans back. Look to consolidate your loans into a low interest rate. Refinancing federal loans with a lower interest private student loan lender is another great option. Veitengruber Law can help you reduce your student loan debts once we meet with you to discuss the specific details of your debt(s).

 

Medical:

Debt from medical bills is one of the “best” kinds of debt to have. You can often negotiate an interest-free payment plan with the provider. Be careful not to ignore these bills and let them go to collections, though. Having any kind of debt in collections can ruin your credit and prevent you from making future important purchases.

 

Credit Cards:

If your credit card debt is out of control, you need to stop adding to the problem and put away the cards. Don’t close the accounts – this will negatively impact your credit score. Put the cards in safe place where you won’t be tempted to use them, and start using a debit card or cash only.

Because the interest rates of most credit cards are so high, repaying significant credit card debt can take years. Always make more than the minimum payment so you are impacting the balance and accruing less interest.

If your credit score is still good, transfer your high-interest card balances to low or no interest introductory period credit cards with no balance transfer fees.*

*IMPORTANT NOTE: Read the fine print before you do this. Credit card companies are cracking down on consumers moving money from card to card to avoid paying interest. You could be hit with a very high rate at the end of the introductory period, or with retroactive interest fees if you move the debt a second time.


There are several strategies you can use to pay down your debt; read our blog post entitled “Snowball vs Avalanche: Digging Your Way Out of Debt” to find the strategy that works best for you and stick to it.


Allowing any type of debt to get out of control can have disastrous effects on your life. The stress of debt can lead to depression, anxiety, physical health problems, relationship problems and more. You may also find yourself in small claims court, civil suits, foreclosure proceedings and bankruptcy court. Your assets like televisions, computers, phones, and cars could be liquidated (sold) in order to pay your creditors.

Take steps now to gain control before your debt becomes an insurmountable mountain. Need help getting started? Call Veitengruber Law for a free consultation.