Hi, my name is Kirsten Krueger and two years ago, I was in a car accident. I was stopped at a stop sign when the driver behind me slammed into my car. Due to my injuries, I had to spend a few days in the hospital and I was unable to work for two months. My medical care was expensive and without being able to work, I couldn't pay my bills. The car accident was stressful enough and then I had to worry about how I would pay my bills. After speaking with a car accident lawyer, it wasn't long before I was compensated for my medical bills and lost wages from work. I'm writing this blog to help others who have been a car accident and haven't received any compensation. As you read my posts, you'll learn how an attorney can help you if you're in a vehicle accident.
If you are struggling to pay your bills on time each month you may wonder if filing for bankruptcy is the best solution for your particular situation. Many people try avoiding bankruptcy because it can have a negative impact on your overall credit. There are times however, where it is the best way to eliminate debt completely. Here are some ideas to give a try before filing for bankruptcy.
Take a Look at Expenses
Take the time to write down each expense you are dealing with at the moment. Write down the amounts of the interest you are expected to pay each month on credit cards or loans. Write down the due dates for these bills, as well. If you have a bunch of bills all due around the same time, it may be to your benefit to spread them out across the month rather than struggle to come up with payments all at once, possibly leading to late fees and extra interest.
Determine if any of your expenses are more of a luxury than a need. Drop cable, internet, and phone service unless you use these for your job. Tracking your expenses down to the penny often shows a few areas where money can be saved.
Determine Your Income
Figure out how much money you make each month at your job. If you are making less than what it would cost to pay your monthly bills including the minimum amount due on your credit cards, you will never get out of debt. Pick up a second job if possible to help.
If your job does not allow you the time to be able to get a second job, consider selling some of your belongings via online auctions or at garage sales to help get you out of the rut you have fallen into. If you have nothing of value, and you are unable to keep up with the bills even with a second job, bankruptcy may be a solution.
Negotiate with Creditors
Call each of your creditors and ask them if they will waive fees, lower interest rates, or allow for partial payments. Many medical facilities will allow you to fill out hardship forms to decide if you are eligible for a discounted rate for bills you owe. Consider getting an interest-free credit card and transfer your current debt to it in an attempt to pay off some of the money you owe. These credit cards often allow you to have no interest for a year or year and a half, making it easier to pay off the debt you owe.
Talk to a debt consolidation agency to determine if you would be better off having them do the negotiating for you. For a low fee, the agency would be able to lower the amounts you owe and will have you pay one lump sump for the debt you owe, to be distributed accordingly. If this avenue will not help, speak to a bankruptcy attorney like Anthony Inserra Attorney at Law.
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