Debt Relief After the Holidays: Bankruptcy is a Last Resort

Though the holidays might only last for a few weeks each winter, the purchases made during this time of the year can lead to long-term problems with debt and recurring payments that many consumers might find a bit too difficult to manage. The good news is that such situations are easy to manage with a number of strategies, including things like structured bankruptcy, debt consolidation, and settlement services. For consumers who went into the holiday season with a large amount of debt and emerged from it with even more, consider a few ways to get things back under control.


The term “bankruptcy” carries with it many negative connotations, but that shouldn’t be the case: Bankruptcy is designed as a lifeline and a permanent way out of many consumer debts It’s a last resort, but one that can save consumers significant money and grant them great peace of mind. Better yet, it doesn’t always mean discharging all debts. Unlike traditional Chapter 7 bankruptcy, a Chapter 13 filing allows consumers to structure their debt in such a way that monthly payments are easier to manage and make on time. That means maintaining healthy creditor relationships while still paying back a typical holiday’s worth of discretionary spending. If you’re considering bankruptcy, you should consult with a professional bankruptcy law firm.

Debt Consolidation

The good thing about debt consolidation is that it brings down monthly payments, stops collection calls in most cases, and doesn’t ding a consumer’s credit report with a public record noting Chapter 7 or Chapter 13 bankruptcy proceedings. That means consumers can pay down their debt faster, without damaging late payments, all while maintaining or even building their credit score. The alternative for many consumers is often falling behind on payments, dealing with collection agencies, and eventually invoking bankruptcy.

As with all debt management services, however, consumers should choose a debt consolidation service that’s reputable, charges minimal fees for the service, and has established creditor relationships. Since agreeing to debt settlement is voluntary for all creditors, consumers will want to pick the company with long-standing relationships and a track record of success.

Credit Counseling and Budget Development

Sometimes, all it takes to get holiday debt under control is the services of a credit counselor. These professionals are specifically trained to help consumers evaluate their monthly income, their monthly debt payments, and the impact these things have on their budget. They’ll find ways of cutting money out of the budget, dedicating it to debt payment, and satisfying creditors’ demands. Though this service does typically cost a fee, it doesn’t result in bankruptcy notations or creditor settlement negotiations. That makes it a bit easier to manage, especially in the aftermath of an already stressful holiday season.

There are Excellent Options Available for Managing Holiday Debt

Holiday debt, even when it’s added to a significant amount of prior spending, is no harder to manage than any other debt. All it requires is an honest evaluation of the options, a willingness to consider bankruptcy, settlement, or counseling, and the determination to follow through with whichever course of action is chosen. Over time, consumers will find themselves in a far stronger financial position and one that involves less monthly payments to demanding creditors.

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