Where to begin?

Date: Tue, 12/28/2010 - 10:19

Submitted by Jill Bishop
on Tue, 12/28/2010 - 10:19

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Total Replies: 2

I am in serious debt and feel serious trouble. I've spent the past few years ignoring phone calles, letters and my concious and know its time to do something if for no other reason, my own mental health. I have no assets, live with family and have only recently found a full time job that has the potential to get me back to where I once was financially. My debt ranges from small credit card debt, pdl's, medical bills and taxes. I have ignored this for so long that it seems so completely overwhelming and I am lost as to the first step. The shame I have has finally become less important than need to fix it. I now live in Wisconsin but my debt began while living in Tennessee over 3 years ago. Because my salary barely covers my basic needs I feel the only option I have at this point is to file bankrupcy. I'm not concerned with the credit implications of bankrupcy because I have lived for so long with no credit that it would take me years to rebuild it anyways. I just want the stress and anxiety to be gone. Sorry for the long, rambling post, but its a secret that I share with no one and am just hoping to find someone who might be able to point me in the right direction.

First, sit down with a pad of paper and a pen. List all that yo

First, sit down with a pad of paper and a pen. List all that you owe and to whom. What State did you live in when you took out the payday loans? Were they internet or Storefront loans? Who are your credit cards with?

lrhall41

Submitted by Lizzie1014 on Tue, 12/28/2010 - 10:40

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You can work out a payment plan for the taxes you owe once you b

You can work out a payment plan for the taxes you owe once you begin drawing a paycheck again. Just go on the IRS website and search for installment agreement. This should be your first priority because the IRS will garnish wages, refunds, etc.

As to the payday loans, do some research on this site to see if they are illegal in your state. Probably by now they've been turned over to a collection agency. If that is the case, then ask for validation. If they are illegal in your state, you need only to pay back what you actually borrowed.

Has the credit card been charged off and is a collection agency calling you? If so, then ask for validation. After receiving validation, see if you can work out a settlement arrangement, whereby you pay them less than what you owe in monthly installments.

There's a tremendous amount of good advice on this site. Just take a deep breath, start researching, and relax.

Congrats on the job. Take one day at a time.

lrhall41

Submitted by aubrey on Tue, 12/28/2010 - 10:56

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