Linda

“Dear Steve,

I am recently separated from my husband in 2007, I had to run to another state for protection, and without a job i started charging and charging. So now I have $25,000. in debt and no job. I am 1/2 owner of the condo i am in, but cant take a home equity cuz I am not divorced totally yet. I cant afford the $700. a month payments….what should I do.

I cant afford the $700. per month payment……..can i negotiate it down, since i will have to default if i dont get it reduced.

Linda”

The Answer:

Dear Linda,

I certainly understand how you got in this situation and I’m sorry about it. Getting out of this debt situation isn’t going to be pretty but once it’s over, it’s over.

My biggest concern before we tackle the debt is that you have no job. Once the credit cards are cut off, and they will be, how are you going to care for yourself? What’s the income plan?

Historically situations such as your own often wind up in bankruptcy. Without any reasonable expectation that you will be able to repay and with income only sufficient to take care of yourself, it is doubtful that any money will be leftover to repay this debt.

These accounts will continue to build the balance up as long as you can’t pay at least the minimum payment and creditors are not interested in reducing your balance to give you a chance.

If you are not able to pay these credit card bills you will wind up in collections. I want you to know that is coming but don’t make any payment promise you can’t keep. If you have to say that you can’t make a payment right now, that’s fine. It is what it is.

Instead of using energy worrying about the debt, take that energy and try to find a job first. Income is the critical component in your solution.

Big Hug!

@GetOutOfDebtGuy

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• I’m the Primary Wage Earner, Getting Divorced, and Upside Down in My Mortgage. – Anne
• My Husband Doesn’t Know About My Cheating. What Should I Do? – Lynn
• Out of My Divorce I Was Left With a Lot of Business Debt. – Lucy
• My House is Paid Off. My Husband and I Are in Deep Debt. – Debbie
• I Am Very Deep in Debt and My Husband Doesn’t Know. – Noname
• ChevGirl Writes In And Says “My Marriage is Suffering Because of Our Debt”
• My Husband is Going to 1099 Me. We Are Getting Divorced. – Suki
• I Have to File Bankruptcy But My Husband Says He Won’t Support It And Will Leave Me. – Julie
• Karen Writes In “Ex-Husband Isn’t Paying The Bills and He’s Trashed My Credit. What Can I Do to Repair It?”

Read the full article at GetOutOfDebt.org, click here: I Ran From My Husband For Protection But Now I’m in Deep Debt. – Linda

Press release just out from New Era Debt Solutions.

A whole lot of commonsense and truth in this release. Good job guys.

@GetOutOfDebtGuy

CONSUMER DEBT OPTIONS THREATENED
“Consumers are the losers with a debt settlement industry in crisis.”

People today are facing more immediate financial pressure than ever before. Jobs are vanishing, foreclosures are trending at record numbers and more people are turning to bankruptcy– needlessly.

What consumers lack today are real concrete solutions to help them deal with problem debt. The only legal solution that is approved in all states is bankruptcy. But what about consumers that don’t want to go bankrupt? What options do they have?

The first reaction that comes to mind is credit counseling as an alternative to bankruptcy. However, this solution does not truly represent consumers. It is not legally binding between the creditor, the consumer or the credit counseling group. Credit counseling groups are compensated by creditors for collecting money from consumers and returning it to creditors. Credit counseling does not represent the consumer in a fiduciary capacity at a time when people need independent advice the most.

Debt settlement allows the consumer to eliminate their financial liability in a mutually agreeable way for less than the full amount owed based on what they can afford. They can actually achieve results in a difficult situation, resolving their money troubles without bankruptcy. Debt settlement helps consumers avoid bankruptcy while returning a fair and negotiated amount to the creditor in a legally binding way. It helps the consumer to be represented by a true third party—the debt settlement company.

“I am extremely concerned for consumers,” said Alex Viecco, VP and co-founder of New Era Debt Solutions. “There’s been an influx of sub-prime mortgage lenders rushing on to the settlement bandwagon trying to make a quick buck.”

Today, many new debt settlement companies are appearing. These companies, many of dubious character and expertise, are creating problems that are leading to a patchwork of state legislation that will close or highly regulate debt settlement companies to protect consumers.

New Era Debt Solutions, a debt settlement company, wants federal regulators to proactively come out with legislation to regulate the debt settlement industry, protecting the consumer and forcing opportunist debt settlement companies off the map.

The debt settlement industry desperately needs one set of federal legislation that provides a clear framework of protective rules allowing consumers access to the valuable tool of debt settlement.

“We don’t want to stand by and watch consumers be robbed of access to debt settlement, leaving them with only bankruptcy as a real and final option to their debt problems,” said Dan Smith, President and CEO of New Era Debt Solutions. “People want to pay what they are able to afford and avoid bankruptcy. Debt settlement allows them to do that. The question is, will regulators and legislators step up and protect consumers by protecting debt settlement through common sense federal regulation? Our goal is to help create regulation for the sake of the consumers and the survival of a valuable industry.” You can contact us at 888-639-4050.

Other Related Articles to Read

• Get Out of Debt
• Fourteen Questions to Ask Any Debt Settlement Agency
• Can I Include My Debt Settlement Company in My Bankruptcy? – Ken
• All About New Era Debt Solutions
• Wanna Know a Secret About the Debt Relief Industry?
• I’m Going to Get My Creditors to Settle the Debts or Accept Bankruptcy. – George
• It’s Been A Year Since The TSR – What’s Changed With Debt Settlement?
• I Can’t Afford My Debt Settlement Program Anymore and Want to File Bankruptcy. – Tony
• Should I Sign With Fast Track Debt Relief? – Mary
• Sales Representative Finds New Way to Poach Debt Settlement Clients

Read the full article at GetOutOfDebt.org, click here: Consumer Debt Options Threatened: “Consumer are the losers with a debt settlement industry in crisis.”