I would daresay that most people in life will hit a point where they are struggling to meet their financial obligations.
This can be for a myriad of reasons.
I have definitely been there.
I have seen bills coming and known that I wasn’t going to have the money to pay them.
I remember feeling the stress and anxiety every day that would keep me up at night disrupting my sleep and waiting for me in the morning to plague me again.
I remember bill collectors calling with one purpose: to figure out how to get money from me that I didn’t have to give them.
There are several reasons people could get into this predicament:
Too much debt, divorce, injury, disasters with home or car, medical emergencies, death, poor planning, etc.
Look, I’m not here to judge how this happens to people, because when someone is in the middle of it, all they want is to find a way out.
If you can find a way to pay your way out of your mess through disciplined planning, saving, and spending changes, then I would advise that you do that.
It will ultimately be the best way for you in the long run and doesn’t leave people that you owe high and dry.
Perhaps there are other options for help like family or a retirement account somewhere that can be used.
However, if you are truly stuck with no way out, then there are solutions to help you get back on your feet.
At this point, your credit is already destroyed or is about to be.
So, the solutions left are debt consolidation, relief, or bankruptcy.
None of these solutions are free but some of them may be free up front with fees added on the back end after they find ways to help you.
Bankruptcy will require an attorney to navigate and I am not here to give legal counsel, only to show a little what the option looks like.
For individuals, there is Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 is total debt wipeout.
For either bankruptcy you are going to pay bankruptcy fees and attorney fees.
If you have assets worth more than what you owe, then you are most likely going to lose them (For example, if you own your house outright, then the creditors are going to sell your house to pay your debts).
Chapter 13 is a partial wipeout and you pay a monthly payment back to keep your house and other possible assets.
There are lots of rules here that I am not familiar with and you need to talk to an attorney to get all the details.
I am just covering the basics here and not giving legal advice.
If you don’t like the idea of bankruptcy or it doesn’t really fit your specific situation, then you could get debt consolidation or debt relief.
Debt consolidation doesn’t typically work with people who are maxed out because lenders will not borrow them any more money typically.
This is especially true for people who are now late on payments.
However, if you can get a loan large enough to cover your debts with a lower rate, then you might be able to lower your monthly payments.
This only partially fixes the problem, but for some people could be all they need.
Debt relief is actually when a company goes to your creditors and negotiates a lower settlement amount.
This is an advocate working in your behalf in order to lower what you owe and your monthly payment.
They are going to charge you a fee on the back end if they can help you so nothing up front to get started.
Even though there may be no guarantees, they are in this industry and know how to communicate with creditors to get results.
The company I recommend is National Debt Relief.
They get have gotten amazing results and what I like most about them is that they treat their customers like real people instead of criminals.
Also, you get all the details about savings free up front with no obligation in case you don’t like how it looks.
I am recommending them here because there are always people looking for help and don’t know where to find it.
I hope this is helpful.