How can I avoid Bankruptcy?
Bully asked:
I am on the verge of Bankruptcy. I have more Bills than I can pay. I was thinking about possibly Consolidating my Loans but i’m not sure how to do that. My biggest problem is I was stupid and got 2 different loans from a high interest Finance Co. (I was in trouble with my finances and I paniced). Now I pay over $300.00 to them each month on top of my other bills.
Reader Comments
You need to call a couple consolidation companies and get quotes. They will try to help you decrease the amount of monthly payments to your credit cards, so you can use the excess cash to pay other bills. Simultaneously, you can get a second job. If you can’t handle $300 a month for bills, you’re in deep trouble; $300 is not a lot of money.
iv’e been in your shoes a while back…you need to just sit down and on a piece of paper write out your entire budget including everything so u know exactly how much you are behind then dont panic and go from there to figure out how to not go bankrupt…good luck!!
NO CREDIT CARDS!
Be careful of debt consolidation companies, they usually cost you a lot more in the long run.
Speak with a Bankrutpcy Attorney, the initial consultation is usually FREE. They can usually help, even if you do not file for bankruptcy protection.
If you qualify for a Chapter 7 Bankruptcy, ALL of your non-secured debts may be discharged (poof).
A Bankruptcy Attorney is a specialist in handling debt issues, and creditors tend to take them very seriously…
The main thing is not to panic. I have been there before. Bankruptcy is the last option! Advice: just don’t pay sometimes they will go into arbitration and the interest will stop accruing, then you can start paying them back.
Warning. A debt consolidation loan is as bad looking to creditors as a bankrupcy. Many people get hurt buy using a debt consolidation company because they don’t always pay your bills.
Do a budget and cut your expenses as much as you can. My wife and I owed over $40,000 in credit cards and striped our budget down to the necessary and paid off all of our debt within two years. You don’t need cable/satalite. We have lived debt free, except a mortgage, for 8 years. You can do the same thing. We are enjoying our live more then most people since we have no debt.
Call your creditors and see if they will reduce your interest rate.
Another option is to get a loan from Prosper to pay off the higher interest rates. It is not a consolidation loan so it won’t hurt your credit. There is no fee to apply and you will get an answer in a week.
ck out this website: . it’s free and he has a call in show you should listen too. you can even call him, he’s great. best of luck!
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.