Are bill collectors harassing you on your cell or at work because of late payments or worse, no payments at all? This is not only embarrassing, it’s also extremely stressful. If you can’t pay your bills you probably need a bankruptcy attorney.
If this sounds like you, you’re not alone. Throughout all of Colorado, credit card debt, student loan debt, car loans and mortgages are at a staggering all-time high. Unfortunately, so are defaults. If you bury your head in the sand for too long, you could lose your home, your car and even your job.
The good news is there are simple steps you can take to get your debt problems under control, and get back on the path to financial freedom.
Take the Calls
Avoiding the calls only delays the inevitable and by then, your situation will only be worse. Take the calls! Explain your situation honestly and calmly work out a realistic payment plan you can keep.
Once you reach an agreement with a collector, you must keep your end of the deal. If you break your promise, they might not be so forgiving and accommodating going forward.
If you have a decent credit score, you can apply for a debt consolidation loan when you can’t pay your bills. This type of loan moves your current debt to a single new loan. In doing this, you’re able to pay all of your loans with one monthly payment, and usually at a considerably lower interest rate.
However, if your credit is damaged because of a history of late payments, charge-offs or defaults, you might not qualify for a consolidation loan. The only way to find out is to try. Get your paperwork together, including income statements, tax returns and copies of all of your bills, and take them to your bank to see if you can qualify.
Get in Touch with Me
If any of your debts are already with a collection agency, then you know the lender(s) are not going to negotiate with you. You still have rights, and you do have options.
If Chapter 13 or Chapter 7 bankruptcy is in your best interest, we will discuss that. If not, we will discuss solutions better suited to your needs.
Being in debt is embarrassing and stressful, but it’s not the end of the world. There is a light at the end of the tunnel. Together, we can help you get a fresh start but you have to take the first step. No one is going to do it for you and the situation will not get better until you take that step.