Beaches, amusement parks, and tons of other tourist-friendly activities. Indeed, “Sunshine State” is the perfect term for Florida. It was ranked in 2015 as having the fourth largest economy in the United States, and boasts a real gross domestic product upwards of $800 billion. With tourism leading the way (97 million visitors in 2014) and tax-friendly policies, it’s safe to say that a lot of those residing in Florida have great financial standing.
Unfortunately, money problems can (and most often, will) strike anyone at any time, even those in seemingly well-off places such as Orlando, Florida. While some of us are lucky to have relatives who can provide temporary financial relief while we get back on our feet, others are forced to resort to acquiring debts from financial institutions such as banks and lending agencies to make ends meet.
While debt in itself isn’t a purely bad thing to have depending on your purpose, there are times that our situations become worse enough that instead of helping us, debts become another headache we have to deal with. And the longer a debt goes unpaid, the higher the interest rates get and the worse off our credit rating becomes. Luckily, there is a way to get out of this unpleasant situation, and that is debt relief.
What is debt relief and how can you benefit?
Debt relief is the process of negotiating with lending institutions to restructure an existing loan or loans to a more manageable setup for the debtor, so he or she can slowly pay it off while recovering from any underlying problem that caused the debtor to miss payments in the first place.
The debtor can seek the help of credit counselors and lawyers to make this process easier, as they have lots of experience helping out clients in similar situations. Provided they have a steady source of income such as employment, Orlando residents can make up ground on their loans a little bit easier than other states since Orlando doesn’t have state income tax. There’s also Florida’s Homestead Law, which protects Florida residents from losing their homes to a creditor or any other lien holder, except for mortgages.
If the debtor still finds debt relief to be beyond his or her capability, then there’s always the option of filing for bankruptcy. There are, unfortunately, laws on bankruptcy and foreclosure that may affect you, so it’s best to consult first with a debt counselor or lawyer.
The best way to get out of debt
Debt relief or debt restructuring, however, doesn’t necessarily absolve the debtor from his or her obligations. It is only meant to help the debtor so he or she will still be able to pay the credit institution he owes at a rate that won’t let them become more buried in their financial struggles.
The best way to get out of debt is to trace the cause of your unfortunate financial situation, and resolve it as soon as possible. That, however, is easier said than done, so debt relief is a powerful option that you should explore immediately should you find yourself in this situation.