Explain why you cannot make your payments and
suggest an arrangement that could work for both of you. You may be
surprised that many creditors are more than willing to cooperate. DEBT CONSOLIDATION LOAN
You can approach a bank or financial institution
about combining or "consolidating" your debts into one loan.
This creditor pays off all your debts and, in return, you make a monthly
payment to that creditor. Make sure you shop around - interest rates
vary. Avoid further credit purchases; this could make your debt load
too great for you to handle.
INFORMAL PROPOSAL
In some cases you can work with your creditors
to set up a payment plan that will allow you to pay your creditors
in an orderly way and thus help preserve your credit rating. This
operates similar to a debt consolidation loan except you do not borrow
the money to pay off your creditors.
If these alternatives will not work for you, and you're feeling "boxed
in" bankruptcy may be the only way for you to get a fresh start.
One of the main
purposes of bankruptcy legislation is to afford the opportunity to a
person, who is hopelessly burdened with debt, to free himself of the
debt and start fresh - "a new lease on life."
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