You have always had bills, but when you lost your job, you found that you could no longer make ends meet. It was a shock to the system, but you quickly got yourself on track. You found a new job, but it pays less. Still, you’re doing all you can do to make payments as soon as you can.
Playing catch up is hard, and it can seem pointless when there isn’t enough money to go around. However, if you’re trying to avoid bankruptcy, you’re on the right track. Part of avoiding bankruptcy is being able to eliminate or reduce debts and payments, so you can live more affordably each month. To do that, one thing you can consider is a consolidation loan. Another option is to seek support by negotiating directly with your creditors.
To start with, a consolidation loan is a possible option if your credit is still good. Putting your debts onto a single loan can help reduce the interest rate and your monthly payment. This helps free up some of your income, so you can make your payments on time.
Another option is to negotiate directly with the creditor. You can ask to settle. For example, if you have $500 in your account and a bill for $700 to pay off the debt, the creditor may be willing to take $200 off what you owe to get the debt paid off. They would do this to guarantee that at least a portion of that debt would be paid rather than to risk getting nothing paid back at all.
These are two options to consider if you’re trying to avoid bankruptcy. Our website has more on what you can do if you’re struggling with your finances.