Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
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Avoiding Bankruptcy
December 20, 2008
There are ways to handle your debt and avoid bankruptcy. For starters, you can come up with a plan to pay off your debt based on the amount of your debt and your monthly income. Cutting back some of your expenses may give you the extra money you need to pay your debt. Paying off your debts one by one will keep your credit intact and give you the money management skills you need to avoid getting into debt in the future.
If you have trouble making your own debt plan, consumer credit counseling is another option to avoid bankruptcy. The new bankruptcy law requires you to receive credit counseling before filing bankruptcy. It might prove to be a viable option. A credit counselor will work with you and your creditors to create a debt management plan that will allow you to repay your debts over a period of time.
Consolidating your debts may be possible if your credit score is still favorable. You can use a loan to pay off your debt, and then repay the loan over a period of time. Many people use a second mortgage or home equity loan to consolidate their debts. Be careful about using a loan that’s secured by your home. If you default on the loan, your home is at risk of foreclosure.
By:themoneyalert.com
Posted by Judith Gerhart on December 20, 2008 | Permalink | Post a comment
Topics: Divorce, Finance, Radio Show, Tips |
