When money problems start to spiral out of control, sometimes it is easier just to keep trying to tread water, furiously, rather than taking heed of those financial warning signs–and getting debt under control. You may have worked hard to get where you are. But circumstances beyond your control may have caused an escalation of debt—and stress.
Here Are Some Warning Signs That You May Need to Seek Help in Finding a Realistic Solution for Your Debt Load:
- You are finding yourself borrowing from Paul to pay Peter. There are many examples of this in finances, but a prime one would be taking a credit card cash advance to pay other bills. This is a loan you must still make payments on, and they may be high interest to boot. Taking out a formal consolidation loan to pay off all your debts with a low interest rate, on the other hand, could be a good solution for you.
- Your paycheck—and then some—is spent before you even see it. This is a good indicator that the amount of money going out is beginning to overtake what is coming in. There are two solutions at this point: make more money, or reduce the debts.
- Student loans have become an unbearable burden along with your necessary other monthly payments, and are causing you to miss out on the rest of life. This is a topic we have written about previously, mainly regarding younger graduates. As a borrower of any age though, you may eligible for a deferment or forbearance program or a new repayment program based on your current income.
- You are living on credit cards. Obviously, time will run out quickly with this game plan. After that, your lifelines in the form of credit are gone, and you may find it very difficult to pay your creditors. Debt management or debt settlement may be your best options, or you may want to explore filing Chapter 7 or Chapter 13 bankruptcy as your last option.
- Debt collectors are writing and calling. This kind of attention usually points to trouble. If you cannot pay the bills in question right away, and they are beginning to mount, it may be time to start negotiating—with a debt settlement program allowing you to pay off debts, and often at substantially lower amounts than were originally owed.
If you are experiencing serious financial difficulties, now is the time to consult with an experienced attorney from Fitzgerald & Campbell, APLC. We can review your case and discuss all the available options with you, to include debt settlement options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations. Let us review your case and discuss what would work best for you. We are here to help!