Financial Resource

For many, this is the toughest question to answer. It is easy to think that if you aren’t behind on all of your bills and are still managing payments, then you aren’t in trouble. But, how are you managing these payments? Are you putting your necessities on your credit card? Are you taking out more loans to pay off the debts you already have?

Whether you are in financial trouble or not depends on a few factors. How do you feel about your current situation? Everyone handles stress differently and some people, though they aren’t in as much debt, need help quicker than others. Are you telling yourself the truth? Being honest with yourself is hard. It requires you to face some facts that you may not be prepared to face. If it is a struggle to pay your monthly bills with your paycheck, you may want to ask yourself the hard-to-answer questions. Let these questions guide you into an open and honest discussion about the truth of your financial situation. If you answer yes to any of them, you may need to start looking at options for help.

Are you spending more than 20% of your paycheck on credit card bills?

Are you dipping into your savings just to get your monthly bills taken care of?

Are you putting things like groceries, mortgage payments, or other necessities on your credit card because you don’t have enough money to pay for them?

Do you have more than 2 or 3 major credit cards?

Are you getting overdue bill notices?

Have you been denied additional credit?

If you are being honest with yourself, the answers to these questions might surprise you. You can ask more extensive questions and figure out what your next move should be by searching for free information from experienced attorneys in your area.

What can you do if you are in financial trouble? While it may seem that there are many options out there, some have proved to help people better and more thoroughly than others. Loan modification may help temporarily but, in the current economic climate, they aren’t easy to come by. If you are one of the lucky few to get a modification, it may actually help you. If you are behind on your payments, the lender may roll your late fees and missed payments into your new balance, leaving you with a higher balance and higher payments than before the modification.

Debt settlement is also an option but it comes with hefty upfront fees and no guarantee of protection. Bankruptcy comes with the protection of federal law—stopping your creditor calls, wage garnishments, repossessions, and even foreclosure while it also helps you eliminate your debt. To find out if bankruptcy is right for you, start by looking up free information. Most bankruptcy attorneys will talk to you for free the first time—and talking to an experienced attorney may give you the right information to make sure you can really get the relief you need.

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