You’ve always used credit cards wisely, but lately, they’ve gotten out of hand. You lost your job and had to pay for rent, used cash advances and found yourself over your head in payments. Using one card to pay off another has only added to the troubles you face.
Now, you’re not sure what to do. After three months, you’re still looking for work and you are running out of options. You wonder if bankruptcy might be the right choice for you. Here are a few things to consider.
1. Try negotiating
Bankruptcy doesn’t have to be the only answer. Bankruptcy is often a last resort, and, in fact, it’s possible that you can address credit card debts without going into bankruptcy if you’re cautious. If you haven’t missed any payments yet, it’s worth reaching out to your credit card company to discuss the loss of your job. Some credit card companies have terms that allow the debts to be eliminated with a legitimate job loss, while others will defer payments for a month or two, so you can focus on finding work.
2. Consolidation could help
If you do find a new job but aren’t making enough to catch up, consider consolidation. Consolidation is a way to combine all your debts, or the majority, into one bill. While the interest rate has the potential to increase, you may find that having a single payment helps you pay down the principal faster.
3. Talk to your attorney
Finally, if you think you’re out of options, it’s time to talk to your attorney. Attorneys who work with those struggling with debts are familiar with a number of ways to help you get back on track financially. It’s in their best interests and your best interests to be in a better financial position, so they’re willing to do anything they can to help get your finances back in order.
From consolidation assistance to negotiating settlements with your credit card companies, it’s possible that an attorney could help you find a way out of debt that doesn’t require bankruptcy. If bankruptcy is the only option left, then your attorney can help you file your bankruptcy claim with the courts and assist as you work through the bankruptcy. In only a few months, you can be free from your debts and ready to start over.
Bankruptcy won’t make you start from scratch, and it certainly is an option. Consider each option carefully before you decide how to move forward.