I just had a conversation with a neighbor who bought a new car late last year and then early this year was replaced by a machine. Well…he was replaced by a machine at his old job…not his family. He got behind on payments and had to return the car. He actually got on with that deal that allowed you to return the car without any damage to his credit profile so good-for-him. The point is, now that he’s got a new job in a new career he’s freaking out about the debt he accumulated while he was laid off. He asked my advice and I told him, “Well, don’t stress out about it. It’s only debt.” After about 15 minutes of ‘yeah buts’, I explained that if he does not have the money to pay his creditors the worst they can do is put him in prison for fraud. After an excited squeel from him I continued. “But, the creditors would have to prove that and it isn’t likely that they could considering you were legitimately employed and legitimately laid off. As long as you entered the contract in good faith then you don’t have a fraud problem.” I continued, “What they’re doing to you now is harassing you for back payments, right?” He agreed. “Ok, then just work something out with them.” My advice is pretty much the same to everyone that has a basic debt problem.
Call each creditor up and get on a repayment program. Get them to freeze all the late charges and interest. If they refuse then you can get backup by calling a legitimate debt settlement company. You don’t have to go into great detail with them but you should at least make the effort to repay. If you just don’t want to deal with them then you have options like Consumer Credit Counseling or Debt Settlement. I wouldn’t make either of those options my first choice before trying to negotiate myself, both have their drawbacks. Try it on your own first and then if you’re just frustrated beyond belief then get hold of a company you can trust. I hesitate to make recommendations as to who you can trust. I’ve had some good experience in recommendations and some bad. If you read this post and see an advertiser on this site then rest assured they are at least screened by me although I make no representation as to the quality their service, it doesn’t constitute a warranty, don’t sue me, etc. (how’s that for legal mumbo jumbo?)
Oh, by the way…I’ll be putting together some more posts soon so bookmark me and check back every so often. I know it’s been a while but Summer’s over and I’m back at my desk for large chunks of the day. 
Take care,
David
PS – Don’t stress over debt. Life is too short. Manage your debt, learn to budget, live happier.
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