Are you drowning in a sea of debt and don’t know where to turn?
You are past the point of being overwhelmed by past due bills. Now, you are beyond beleaguered and thinking of declaring bankruptcy just to get on with life.
Before you take that drastic step, try a few of the suggestions below to consolidate debt with bad credit and see what happens.
Steps in Consolidating Debt
This process will require you to eat a lot of humble pie, but fortunately many of the interactions that you will have will not be face to face. It’s a lot easier to admit your problems to someone over the phone or on the Internet. You can also take courage in knowing that millions of other people are in your same situation. They have lost a job, been besieged with medical bills or have been inundated with college bills at a time when they could not afford them. This means that certain people and agencies have seen cases like yours and know that some of them can have a happy ending for all parties. You are NOT the only person trying to consolidate debt.
Step one is to contact your creditors and see if you can work out more favorable terms with them. This might involve a revised payment schedule that requires lower payments over a greater amount of time, possibly skipping a payment while you are unemployed or even a chopping of your total bill. Some creditors will be far more eager to interact with you than you anticipate. They want at least part of your debt paid as opposed to none of it.
Step two is to go to your credit union or bank and see if you can obtain a small personal loan to wipe out some of your debts. In this world, it is still partially who you know, not what you know. If you have a cordial relationship with your local banker, then your chances of getting a small loan increase significantly. You might even be able to persuade a lender to write checks directly to your creditors and then asking you to make repayment for that total to the bank or credit union.
If you have listened to the radio anytime recently, you know that there are scores of debt counseling services that claim to be non-profit organizations and happy to “help” you. You need to comparison shop among these companies.
Do you have a friend that has received true assistance through such an organization and can make a recommendation? Such trustworthy groups are out there, but you need to do your research to find them.
The Better Business Bureau can be of help here, as can the Federal Trade Commission. Don’t be surprised by a small monthly fee to enroll in a given plan, even through a “non-profit” outfit, but if you can find a credible company that can help you to consolidate debt with bad credit for a nominal charge, go for it.