Debt Mender

get out of debt tips
Please help! I need some good getting out of debt tips.?

I am about $50K in debt and the bills seem to never go away! I don’t have many bills but the bills I do have are big. The interest rates are high. It seems like I can’t get anything lower than 33% interest. Any advise/tips would be great! I am tired of getting paid and not being able to enjoy any of it!

Have you considered filing for bankruptcy, such as Chapter 7? You didn’t state how much your income is, but if you are below 150% of the poverty level for your family size (which is relatively high and gets higher every year), you could get Legal Aid in your state for free, as well as file your bankruptcy and be represented by them for free. Chapter 7 bankruptcy will erase any unsecured debt, such as medical bills, credit card bills, consumer debt, phone bills, etc., and let you get a fresh start in life. The only things bankruptcy will not cover are taxes, child support, alimony, student loans, and secured debts (debts covered by collateral, such as your car or home). The majority of your assets cannot be taken from you during a bankruptcy, such as your car, home, personal property up to $4500, appliances, one TV, one computer, and many more things, depending on your state. Although many people think bankruptcy is a bad thing for their credit, and should be avoided at all costs, this is not always the case. Most lenders do not care if you’ve filed for bankruptcy, so long as you immediately begin to build credit again after, and even during, your bankruptcy. You can’t imagine the number of people financing new cars and homes as soon as two years after filing to discharge their debts. Once the debts are discharged, the creditors can no longer hassle you, since the debt no longer exists.

If your income is relatively good, you can file for Chapter 13 bankruptcy, where you work with a bankruptcy trustee to come up with a payment plan that will get you out of debt relatively quickly, and in most cases, drop your interest rate to almost nothing. It is definitely worth looking into. The creditors must work with the trustee to get their payments, so they are more willing to be reasonable, especially once the court becomes involved. If you must pay for a lawyer to file either of these bankruptcies, the standard fee is $1500, but it is well worth the peace of mind you will earn.

If you are not interested in either of these plans, call your creditors and ask to be given a smaller and more reasonable interest rate, especially if you are making consistent payments. It is in their best interest to work with you, because if they force you to file for bankruptcy, they will not get another penny, right?

I wish you the best. If I knew more about your debt and circumstances, I could give you better answers…but good luck anyway.