People faced with suffocating debt and no income, are understandably depressed; but often, I would say almost always, they never seem to do anything about it other than panic, retreat into seclusion, and file for bankruptcy. The whole owing money situation, if you ever are caught in it, has just one rule that you need to keep in mind: make sure that you see a credit counselor (a real one and not a quack), and then that you get in touch with a bankruptcy lawyer. The thing is, even if it might seem that way, the whole world isn't ganging up on you try to get you to file for bankruptcy. People just want their money back; if not all of it, with all the interest, then just what you can manage. If you can make a deal with them with the help of a credit counseling service and get them to tailor a proper debt management plan for you, you can expect that you'll be given time to pay your loan, that they will ease up on the interest, and taht you can rest assured that you will never be filing for bankruptcy. But credit counseling doesn't often work for people in desperate straits; so getting in touch with a bankruptcy lawyer might be a good thing either way.
The National Federation of Credit Counseling has apparently been pretty busy this past year, and understandably so. Of all the millions of people that accredited credit counseling services helped this year, only about a million folks were able to get their life in order with their help. The rest had already put the kibosh on their lives so badly, or were too sorry for themselves with an alcohol problem to boot, that they couldn't be helped. But these are all cases where people have not shown a shred of responsibility. For those who do have a shred or two left, credit counseling should be just fine.
Usually, the credit counselors don't help you write off any part of your loan; you do have to pay it all. They just help you work out a plan. Debt management is where your financial planners help negotiate lower interest and more time. If you sign up for one of these, it can actually make your life more difficult, and not leave you enough money to live. Things can often get so difficult, that you may have to drop out. Debt management programs have high dropout rates for this reason. When you get desperate people to a debt-management meeting, and set a plan before them that squeezes them dry, they feel they want to do their best and get their life back on track; and they agree to impossible conditions. Credit counseling services these days try to make things somewhat easier on these poor people, by getting the credit card companies to back off, and accept lower payments so that people aren't forced off the plan y the extreme hardship. And they encourage you to save a little, for a rainy day too.
Of course, seeking out a credit counseling service isn't something you're supposed to rush out and sign up for. If you can possibly work out a budget on your own terms and pay them off on yourown, there is nothing like it. Who wants a bunch of strangers in your business? Sometimes, if you have reasonable credit, you could get a little loan from Lending Club or Prosper, at low interest. But we shouldn't let it go too long without seeking help either. If you find that you're constantly completely tapped out, you should consider getting help. There is so many options out there; if you would read up, you can make out all the options available in your area.
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