Maybe it’s not that you don’t want to pay your bills, but you simply cannot keep up with the monthly payments any longer. The worsening economic crisis does make it difficult for any one to meet his monthly obligations. Crisis or no crisis, however, you have to deal with your debts somehow, and you have to start somewhere. There are several debt-relief options you can look into, and one of these is debt counseling.
Debt counseling is a process of consolidating your debts. By this means you’ll be able to manage your loans better. Although you may not be totally debt-free, debt reduction by as much as 50% is a big possibility, and this can prove to be a big help already.
Another way to get yourself out of the crunch is to borrow from your insurance policy, assuming you have one. If you have been paying your premiums for many years already, you must have accumulated enough cash in your policy. In which case, inquire with your insurance company if there is any chance that you can borrow some of the amount to pay your debts.
Similarly, you can borrow from your retirement plan. If you have a 403B or 401K plan, consider borrowing against it for the time being. The interest rates are usually lower, but then do understand that you will need to pay this one up in full with interest; otherwise, you will be charged a penalty tax.
You may not be aware but the government often offers some kind of debt-relief programs in the form of grants and loans. There are certain requirements, though, so you may need to check first if you are able to qualify to the programs available.
Finally, if all else fails, the last recourse is to file for bankruptcy. It has to be emphasized though that this drastic means should be avoided as much as possible as this can affect your credit score.
