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| Debt Disaster Relief E-Book |
| Where do you turn to if you can longer afford your bills? |
| There are several non-profit organizations that can help you reorganize your debt. The most predominate one is Consumer Credit Counseling Services, better known as CCCS. This company works directly with the credit card companies to work out lower interest rates, stop late payment fees and over the credit limit fees from accumulating, and to lower your payment.
Consumer Credit Counseling Services will analyze your budget and determine how much you can afford to pay to your credit cards. They are not as stringent as you might think with regards to helping you with a household budget. They want you to be able to make your new payments and to be a success on their program so they leave you plenty of moon for food, etc. Once the company determines how much you can afford to pay, they will make arrangements with your credit card companies. Then you will make one payment to CCCS and they in turn will disperse your payments to the individual companies. Another company like this is Money Management and is also non-profit. There are also a multitude of for profit organizations. These companies charge fees for a similar process. When I worked in collections the two companies we worked with commonly were CCCS and Money Management. |
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Depending on your situation and your debt load, bankruptcy may be an option for you. If you are way over your head this may be the best option to get a clean start. Bankruptcy attorneys usually offer free consultations. My advice would be to try to analyze your own situation and determine the best course for you. I would become familiar with the different kinds of bankruptcy and some general information before you go to speak to an attorney.
Regarding bankruptcies just remember the goal at hand: to get rid of debt. If you file bankruptcy, companies will want you to �reaffirm.� This means you will not include the account in the bankruptcy and the company will keep your account open (you still have to make payments, etc.) so you will have a credit card for emergencies. The myth, that there is no way you can get credit after a bankruptcy, is false. It will cost you as far as a high interest rate. And there are many companies who specifically target this market, from car dealerships to specialized credit cards. So before you �reaffirm� an account really think about if paying your balance is worth the possibility of having a little available credit for emergencies. One point to remember here is that nothing is guranteed. If you are considering this route, be knowledgable. Speak to an attorney and have specific questions ready regarding your particular situation. If you speak to someone at CCCS be aware that they believe there are alternatives to filing bankruptcy as they are funded by the credit card companies. |
| What about bankruptcy? |
| If you are having problems paying your basic bills there are some organizations who may be able to assist you. Make a few phone calls or ask around to see who can help you. If you belong to a church, sometimes they are able to provide assistance. There are also many food banks you can visit.
If you have a house and have a possible foreclosure situation you might want to speak with a bankruptcy attorney to see if you have any options. You can also rely on friends and family. If you have the option of moving in with a relative to get back on your feet, look at it as an opportunity for a fresh start. Often times very good things can come out of a bad situation. |
| Problems with other bills |