Billions of people in the United States have high debt, so you shouldn’t feel like less than a human being for it. Life happens, and sometimes it isn’t kind to everyone. Don’t get down if you find yourself in a situation where you are swimming in the sea of overdue accounts. Financial problems are not as complex as some people try to make them. You either have the money, or you don’t. Calculating your available income can provide you with the answer to that question. You can calculate your available income figure by deducting your monthly bills from your monthly income. If the outcome is a negative figure, then you are unable to repay your debt in a timely fashion. Your only two options are bankruptcy or a time-based repayment plan that will leave you with horrible credit for many years.
The Bankruptcy Option
Millions of debtors flocked to the bankruptcy table in former years because it was easy to do so. The numbers have since decreased because the process is now difficult and almost impossible for extremely destitute people to do. Persons who want to file bankruptcy must go through credit counseling and pay fees that are $2,000 or more. The $2,000 requirement prevents the truly poor person from obtaining a judgment that could release her from financial obligations that she can’t meet. Meanwhile, her credit score continues to plummet, which prevents her from moving into affordable housing. The struggle continues to worsen over time, and the possibility of filing for bankruptcy all but disappears. If you’re in this situation, you will have to suffer through the repayment process. Bankruptcy is not an option for you even though it looks like it is.
Suffering Through Repayment
The only way that you can repay your debts and still eat and have a roof over your head is to repay them in a pick-and-choose manner. You will have to choose one debt to work on at one time and then move on to the next one after you pay the first one. This process could take decades, but there is no other way to do it if bankruptcy is too expensive. Debt management plans can end up making matters worse because they will split the payments among numerous accounts, which won’t help to get anything paid quickly. Your credit score will not increase much if at all, but you can still establish your intent by making continuous payments.
Developing a Plan
Developing a plan doesn’t take long when you don’t have much. Calculating the monthly income is easy when you only have one job, as well. You should try to trim the fat off of as many debts as possible before doing the final calculations. You can develop a repayment plan once you reduce the household bills.
Finding a Good Financial Adviser
Financial advisers, or advisory firms can assist you if you do not feel confident enough to handle your monetary affairs. When searching for a reliable financial adviser, you should always read consumer reviews, check the Better Business Bureau, and speak with the advisers to see if they are a good fit.