Is there ANYTHING for people like me to do? Can I negotiate with the creditors in this case? In all of my research it is saying you have to be behind on debt to settle. We struggle every month now to make the payments (and have for YEARS) and I can’t take it anymore. – Mburns

I am not behind, have great credit and great rates but cannot afford my monthly payments when my husband gets laid off( possibly in a few months)

Is there ANYTHING for people like me to do? Can I negotiate with the creditors in this case?

—Mburns

Hi M,

Given the brief detail you provided, you basically have 3 options.

You indicated you have great interest rates, which would likely eliminate credit counseling as an option. The only real benefit to Credit Counseling is interest rate reduction and thereby lower monthly payments.

That leaves bankruptcy and negotiating a reduced balance with creditors.

Having struggled for years, perhaps it is best to end the struggle by filing for chapter 7 bankruptcy if you can qualify. You should find a local bankruptcy attorney and set up a consultation to see how that option will fit your situation. If you find that you cannot qualify for a chapter 7, or learn details that suggest you should try to avoid it;  you should consider how a debt settlement approach to your debt may help.

You do have to be behind with payments in order to negotiate reduced balance pay offs with your creditors. The idea of falling behind is often foreign and scary. If you do so with a plan in place, and a full understanding of what will happen along the way, the fear is, for the most part, removed.

At this point, I would encourage you to schedule a consultation with one of our specialists AND schedule a consultation with a bankruptcy attorney local to you, in order to learn the full details of both options.

You will then be able to make an informed decision on which route is the best for you to take.

You Can Survive Debt!

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