I just had a conversation with a neighbor who bought a new car late last year and then early this year was replaced by a machine. Well…he was replaced by a machine at his old job…not his family. He got behind on payments and had to return the car. He actually got on with that deal that allowed you to return the car without any damage to his credit profile so good-for-him. The point is, now that he’s got a new job in a new career he’s freaking out about the debt he accumulated while he was laid off. He asked my advice and I told him, “Well, don’t stress out about it. It’s only debt.” After about 15 minutes of ‘yeah buts’, I explained that if he does not have the money to pay his creditors the worst they can do is put him in prison for fraud. After an excited squeel from him I continued. “But, the creditors would have to prove that and it isn’t likely that they could considering you were legitimately employed and legitimately laid off. As long as you entered the contract in good faith then you don’t have a fraud problem.” I continued, “What they’re doing to you now is harassing you for back payments, right?” He agreed. “Ok, then just work something out with them.” My advice is pretty much the same to everyone that has a basic debt problem.
Call each creditor up and get on a repayment program. Get them to freeze all the late charges and interest. If they refuse then you can get backup by calling a legitimate debt settlement company. You don’t have to go into great detail with them but you should at least make the effort to repay. If you just don’t want to deal with them then you have options like Consumer Credit Counseling or Debt Settlement. I wouldn’t make either of those options my first choice before trying to negotiate myself, both have their drawbacks. Try it on your own first and then if you’re just frustrated beyond belief then get hold of a company you can trust. I hesitate to make recommendations as to who you can trust. I’ve had some good experience in recommendations and some bad. If you read this post and see an advertiser on this site then rest assured they are at least screened by me although I make no representation as to the quality their service, it doesn’t constitute a warranty, don’t sue me, etc. (how’s that for legal mumbo jumbo?)
Oh, by the way…I’ll be putting together some more posts soon so bookmark me and check back every so often. I know it’s been a while but Summer’s over and I’m back at my desk for large chunks of the day. 
Take care,
David
PS – Don’t stress over debt. Life is too short. Manage your debt, learn to budget, live happier.
1 response so far ↓
1 Free From creditors // Nov 22, 2010 at 10:41 am
When one finds themselves in financial troubles they may not know what to do. It seems that the only way out of financial difficulties is through filing bankruptcy, but this is not necessarily the answer. Bankruptcy laws have changed and it is now harder to qualify for Chapter 7 bankruptcy. Chapter 13 bankruptcy does not always provide the protection one really needs. Bankruptcy does not protect a person from wage garnishments or stop debt lawsuits. In addition, it will give control of one’s finances to a third party who will do what they feel is best despite your wishes.
This can be an unsettling way to deal with a tough situation. When one has lost their job or income they need help in stopping payments and stopping debt lawsuits that can garnish their wages and other assets. There are many ways that one can accomplish this, but in order to be successful at it, one may find that they need the help of those who have had experience in such matters and can help to create the legal documentation that will do so. This can be a difficult task for someone who does not know the legalities of the situation.
Using a service can help you in dealing with creditors and in stopping debt lawsuits. A good service will make a credit collection agency prove their claims which can be difficult for them to do if they have acquired the debt from another company. In addition this can also stop lawsuits that really have no basis. A good service can also help you in getting your creditors to lower the amounts you owe and help in establishing a payment plan that you can work with, one that you are involved in creating and therefore that goes along with your wishes. This can be a tremendous benefit in gaining control of your finances.
There are many services that claim to be able to help by counseling you in your finances and consolidating your debts. In some cases this can be beneficial but to get the maximum benefits one needs to be able to stop debt lawsuits and protect their assets. They also need to find ways to decrease their debts while lowering the payments that they have to make. When one is looking for such a service it is important to determine exactly what they offer and how much experience they have in handling such matters. This can be your best decision in determining what will work the best in your situation.
ADMIN EDIT: How dare you spam me with such decent content!! thanks for the comment but link was deleted.
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