You're Not Alone
Many people face a financial crisis and need debt relief at some point in time in their lives. Debt is not something to be ashamed of. In fact, most Americans are currently in this situation. Whether it is caused by a crisis such as personal or family illness, the loss of a job, poor budgeting or overspending, owing a large amount of money can seem overwhelming.
The Golden Rule
DO NOT RUN FROM YOUR DEBT. Most creditors, including the IRS and other tax agencies, are usually willing to work with you. The tax agencies will work with you if you don't try to hide from them. They're busy trying to track down people that won't return calls or letters. The worst thing you can do, both financially and legally, is to become one of the "evaders".
Debt relief can usually be negotiated with lenders. Some lenders may reduce or suspend payments for a short time. When it is time to resume regular payments, though, it may be necessary to pay an additional amount toward the past due total. Other lenders may agree to change the terms by extending the repayment period to reduce the monthly payments.
Create a Budget
Developing a budget is the first step to controlling your financial situation and finding debt relief. Debt counselors are professionals at assisting consumers in developing an achievable budget. A realistic assessment of how much money an individual or family will take in and how much money will be spent can go far in helping control and conquer financial problems. Computer software programs can also be useful tools for developing and maintaining a budget, balancing a checkbook and creating plans to save money and pay bills.
You Have Many Options
There are many options that are available such as budgeting, credit counseling from a reputable organization, consolidation, negotiation, or bankruptcy. Consumers should choose which option based on the level of money that is owed as well as how disciplined they are. Most libraries and bookstores have financial books on financial management. This can be a very good place to start researching which option is best.