subject: Are You In Over Your Head? There Is Debt Help Available [print this page] Sometimes it happensSometimes it happens. For reasons out of our control or let's face it, overspending on our part, we find ourselves in over our head and we need debt help. Paying off the minimum amount doesn't take care of the interest that is added each month and the monthly household bills still have to be paid.
Once we get to the point where our debt is controlling us, what do we do? File for bankruptcy? That isn't as easy as it used to be and our chances of getting any kind of credit in the next 7 to 10 years would, for all intents and purposes, be gone.
We could call the credit card companies and ask for help but they probably won't negotiate because they are making money off of all the interest. There is debt help available.
The Obama administration is the first place that is going to help us. The new credit card bill of rights has some provisions contained in it that address some of the problems that cause the cycle of debt to multiply. Among them, companies can no longer raise interest rates on previous balances, no fees to make a credit card payment, and no over the limit fees,
There is much more to this bill that will go in to effect on July 1, 2010 but the exciting news for all who are in over their head is that the cycle of fees compounding will be gone. No more over the limit fees because the late fee pushed you over.
The best debt help available is credit counseling. Before we discuss credit counseling, it's important to realize that just because a company advertises that they can provide debt help doesn't mean that they actually will. There are many companies who advertise as being able to help but end up pushing the person deeper in to debt because they charge fees on top of the fees already being paid.
A great resource for help in picking the right credit counselor is to go to the FTC website. This website offered by the federal government contains a list of known reputable agencies.
The right agency will be able to take steps to reduce your debt. First, they can often get a reduction in your interest rate, eliminate late fees and sometimes get some of the interest waived. Next, they can consolidate payments in to one that is paid to them and they pay the credit card companies. Finally, they can provide ways to avoid getting in over your head again.
If you are in over your head, there is debt help available. Don't file for bankruptcy unless absolutely necessary in the end.
