Dealing with Debt

“In the midst of life we are in debt, et cetera,” sang one of the great bands of the 1980s (The Smiths, in case you have to ask), and truer words were never spoken. There’s little you can do to totally avoid debt in your life, and in some ways that’s not a terrible thing. You may be surprised to learn that some debts are a lot better than other debts. What you want to do is reduce your “bad” debts before worrying too much about your “good” ones.

The first step is to find out how much you owe and to whom. The next is to gain a little knowledge about what exactly credit is and how the different types really work. Remember: Knowledge is power. For those in need of a little bit more aggressive help credit wise, we tackle the issues of debt consolidation (in which you bundle your debts into fewer payments), negotiating with creditors (yes, it is possible and in many cases very advisable), and seeking professional help from knowledgeable credit counselors who can size up your particular situation.

In the end, it may be that even after all that, you are still saddled with too much debt to keep your head above water. In that case, we give you the lowdown on whether, when, and how to declare bankruptcy and thereby give yourself a fresh start while protecting as much of your assets as possible. There is such a thing as a second chance, but if you need it, you need to do it the right way.