Speaking of debt solutions, we recently got a call from Paula, a friend of ours, about her situation. She was frustrated because her tires were just stolen, she got a notice from her mortgage company that she had an "escrow shortage" and her mortgage payment was being increased by another $150 per month.
Her basement had just flooded and the plumber wanted $4,000 to dig up her backyard to fix the problem, and her auto lease would be ending in a month and she didn't know what she should do.
At this point she just shouted "I don't know how people deal with all of this financial stuff, its just too much"!
Sometimes your finances can feel so overwhelming that you just want to wipe out everything and start over (i.e. file bankruptcy). I know what you mean, I've been there myself.
What are Some Alternatives to Bankruptcy?
True enough, bankruptcy may be a solution to your debt problem, but it may not be the best debt solution for your particular financial situation.
By now you may be wondering "what are some alternatives to bankruptcy"?
Well, here's a list of ways to possibly avoid bankruptcy:
Which Debt Solution is Best for Me?
Before you make any decisions, regarding the best alternative for your debt, you should know what your specific financial situation looks like.
You need to do an analysis of your financial situation.
How much you owe in total debts? How much do you owe to each creditor? What is the interest rate for each debt?
This is a really important step because you need to know where you are before you decide the best way to get to where you want to go. Make sense?
Ok, so get a cup of coffee and gather together all of your financial stuff:
You can gather most of this information from your monthly statements.
I know this may seem like a lot of work, but don't worry, you can use a debt elimination software program or an online debt elimination system to help you to evaluate your financial situation.Debtfree › Debt Solutions