If You're Having Money Problems

Some people use credit so poorly that they get into major money problems. They aren’t necessarily dumb; they just don’t plan well. They count on steady income and then lose their jobs…or they suffer unexpected health problems or family crises that wreck assumptions about their abilities to pay.

If you’re working overtime or two jobs and still can’t cover your living expenses and minimum interest payments, you’ve got money problems. But don’t despair. Thousands of people are in the same situation.

The question is: What can you do when money problems get serious? Some will say you have to declare bankruptcy. But that’s not necessarily true. Bankruptcy really works best for people with assets (a business or real estate, etc.) to protect.

If you don’t own a home or business and your debt is largely unsecured consumer credit, you may do better to consider some options to bankruptcy… and the years of damaged credit it involves.

Next: Make a Simple Budget