How to Deal With Overwhelming Debt

What to Do When You Can’t Pay Your Bills

The current economic recession has affected millions of Americans. You may be one of those people who are now faced with enormous credit card debt. You may have fallen behind with your mortgage payments and other personal loans. There may be perfectly valid reasons for your financial problems- job loss, medical expenses, reduction in income. Add to this the rising cost of gas and food and it’s easy to see why so many people are having difficulty paying their bills each month.

Unfortunately, your bills keep coming even when your financial situation has changed. If the payments to your creditors are late every month or you are using credit cards to pay off other debt, it’s time to take a serious look at your finances and start taking positive steps towards climbing out of your financial hole.

Recognizing that you are in trouble is one of the first things you can do to start moving ahead, but it is sometimes the hardest. No one likes to admit that they don’t have enough money to make ends meet or are having a hard time providing for their family. But ignoring the facts won’t help. As much as you would like to “wish away” that pile of bills, they will keep coming. And along with them will be late fees, rising interest rates, and a ruined credit rating.

The bottom line is that your creditors want to be paid. Most or all of them will be willing to work with you to arrive at a reasonable repayment plan which allows them to receive regular payments but still gives you some breathing room. But unless you contact them and explain your situation, they have no way of knowing any of this. They only see a customer who is consistently late with payments or skips them altogether.

Here are some things you can do when you find you can’t pay your bills and need help:

If you have reached the point where paying your monthly bills is not only difficult but nearly impossible, don’t panic. There are options available to you to reduce your debt and improve your financial situation. But the important thing is to take positive action, not ignore the problems. If you deal honestly and openly with your creditors, you have the opportunity to protect your credit rating and perhaps even save your house.