When you see unpaid bills piling up, you should know that your financial health is at stake. But you aren’t the only sufferer of this disease- it is getting common and people all across the country are diagnosed of this ailment.
Is it the end of the financial road? Almost never. There are many solutions that can cure your financial problems- from recovering your relations with creditors to lowering your debts- all your problems can be solved, and your tomorrow can become better.
Start checking the pulse of your account books. If you are getting calls from bill collectors, it is a strong sign that you are having financial problems. And if you can’t stretch your paychecks to cover monthly bills, you need to act fast.
Review your situation. Verify if all the pending bills are valid and they have no disputes. You can call your creditors and tell them about your situation. You can ask them to extend the deadline if possible. If your creditor understands this, it puts you in a comparatively comfortable position. But in any case, your creditors are not entitled to harass you, and there are many laws to protect you against such harassment.
Stop all the needless spending and plan a budget. Categorize your expenses as optional and necessary. Make sure to create a spending plan that ensures that you do not collect more debt. Use your savings to pay back the debt, and try to find extra resources if possible. These resources can be food stamps, Medicaid, and unemployment compensation etc.
According to the bankruptcy law, you should get credit counseling. There are many providers that offer credit counseling guidance to prepare an action plan to end the financial crisis. They can also talk to your creditors to make things easier for you.
You can file for bankruptcy, but this must be done after a lot of thought. You should consult bankruptcy lawyers before arriving at this decision because there are a lot of complications involved in bankruptcy. Two kinds of bankruptcy options that you can have are chapter 7 and chapter 13. There are many criteria that you need to fulfill for bankruptcy. A lawyer can assess your needs and suggest the right option to you.
Prevention is better than cure. To fight financial diseases, take care that you do not spend too much, and stick to your financial plans.