My wife and I are both on disabitly we have gotten way over or head since my wife had to go on disabitly. We can't even make the min. payment because of on going medical expenses what do we do? we don't want to file bankruptcy. I have talk to counseling agents they have went over our income and outgoing for necessitiesand find we are in a bind can you are someone help us in this matter? as we are at wits end and don't know what and where to turn. Danny & Brenda Witcher

Filing bankruptcy should definitely be your LAST option. You want to exhaust all other resources before even thinking about taking this step. Have you considered other financial services that could be a viable option toward assisting you getting out of credit card debt? For instance, take a look at this web page: http://www.nationalpayday.com. They offer credible and reliable information through there articles on financial struggles, including credit card debt and bankruptucy. They also offer financial services that can temporarily assist you and your family. Read through the articles and see what you think. If you haven't considered this then maybe you should. Best of Luck!

Depending on the type of debt you are talking about, most creditors (especially credit card companies) are willing to work with you. When I was diagnosed with cancer (and the six figure treatment that went along with it), my first call was to Discover. I had recently consolidated all my credit cards onto my Discover card and knew that with only a small disability check coming in for the next year, I'd be up the creek. I simply told them my situation and they agreed to freeze the card for 24 months. I couldn't USE it, but the interest stopped accumulating, my minumum payments went down to less than $40 a month (on a substantial balance) and now, 3 years later, I'm back on my feet, the card only has $1,800 balance left on it, my credit report was not impacted (because I paid the new lower amount as agreed) and my credit limit has been increased to almost where it was when I asked for the assistance. Always call the creditors DIRECTLY first - they'd rather work with you and keep you as a customer if at all possible.

There is almost nothing more troublesome than having too much debt to pay each month. Consumers incur debt for many different reasons. Sometimes illness, accidents, or just bad luck can make it seem impossible to get finances under control. Other times it is simply because we spend more money than we earn. The first step toward taking control of your financial situation is to learn how to eliminate your credit card debt.

Develop a budget. Start by listing all sources of income. First list fixed expenses such as mortgage payments, insurance premiums, and auto loans. Next, list the expenses that vary from month to month such as utility bills, recreation and clothing. If there is any hope of controlling your credit card debt you must create and stick to a budget.

There are different kinds of debts. Mortgages and auto loans are debts secured by collateral. In the event of default on a secured debt, a lender may foreclose on your home or repossess your car. Unsecured debts are loans with no collateral and often have variable interest rates and are assessed a fee for late payments. In the event of default on an unsecured debt a lender may report to a credit-reporting agency, contact the debtor repeatedly by mail or telephone, and in general make life miserable for those who find themselves in financial trouble.

If you are among the millions who have found themselves in a financial crisis, consider your options - budgeting, debt consolidation, or bankruptcy. Which works best for you? It depends on your level of self-discipline, how much debt you have, and your future financial prospects. While eliminating debt may seem next to impossible, your life does not have to go from bad to worse.

Self-help may be the easiest, cheapest way to eliminate debt. First, stop charging now. Incurring more debt will only compound the problem. Make a list of all your credit card bills starting with the smallest. Pay as much above the minimum payment as you can afford on the card with the lowest balance. Continue until this debt is paid in full, and then proceed to the next card. Systematically paying off your credit cards one by one will reduce your debts dramatically. The fastest way to eliminate credit card debt is to put every penny you can towards paying off your credit cards. Do not underestimate the effect an extra five or ten dollars paid repeatedly over time can have on eliminating debt.

You may be able to reduce the amount of your combined monthly payments and lower the interest rate by obtaining a home equity line of credit or a second mortgage. Think carefully before taking this route. Your home becomes collateral with these loans. If you make late payments or miss payments you could lose your home. These types of loans may provide certain tax advantages but the fees can really add up. The same goes for debt consolidation. You eliminate or reduce interest rates and the amount of your monthly payments, but the length of the contract and the fees can be more than your original debt.

As a last resort, bankruptcy could be considered. A bankruptcy remains on your credit report for 10 years, making it difficult to obtain credit, get life insurance, or buy a home. However, it can be a fresh start for those who cannot otherwise satisfy their debts.
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Iolite Case

Legally, you have no obligation to pay debts of more than $1750 that were on a citibank account in or before 2006. Federal courts determined that these accounts were fraudulently extended, and citibank has no legal recourse if you stop paying on one of these accounts.

can someone give me feedback about debt relief agencies as a way of getting out of debt

do you know where I can find the federal court ruling?

Yoiu will need to go to the federal court website and see if it is listed.

We help consumers who have more than $5k in unsecured debt. We guarantee settlements at 55% of your current balance or better. Call or email me for more details.

John Shapiro

Don't give up yet...I've spent a lot of time online researching different debt relief programs. There are big differences in them. I found one that is attorney-driven, which means the legal perspective is covered from the very beginning. Check them out...hope this helps!

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