When You Can't Pay Your Debts FAQ
Strategies to help you get out of debt.
» I feel completely overwhelmed by my debts and don't know where to begin. What should I do?
I might have to miss a car payment. Should I let the lender repossess?
How soon after I miss a house payment will the bank begin foreclosure proceedings?
If foreclosure is looming, might I be better off just selling my house?
My utility bill was huge because of a very cold winter. Do I have to pay it all at once?
When can a creditor garnish my wages?
I feel completely overwhelmed by my debts and don't know where to begin. What should I do?
Whether you're already behind on your bills or worried you might fall behind soon, call your creditors. Let them know what's going on -- job loss, divorce, medical problems, or other troubles -- and ask for help. Suggest possible solutions such as a temporary reduction of your payments, skipping a few payments and tacking them on at the end of a loan, skipping a few payments and paying them off over a few months, dropping late fees and other charges, or even rewriting a loan.
If you need help negotiating with your creditors, consider contacting a nonprofit debt counseling organization. You can find a list of counseling agencies by location at the website of the U.S. Trustee, www.usdoj.gov/ust (select "Credit Counseling and Debtor Education.") The federal government has authorized the agencies on this list to provide counseling to debtors considering bankruptcy. However, don't pay anyone to "fix" your credit. For more information, see Don't Use a Credit Repair Clinic.
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