So you spent too much time emptying your wallet and fattening your waistline at one too many San Francisco restaurants.Â Or maybe it was the shopping here in the City that that did your credit cards in.Â Or maybe one too many nights out at any one of SFâ€™s hotspots pushed your credit card limits to the max.Â
Then again, maybe itâ€™s something less irresponsible.Â
Maybe you lost your job and just canâ€™t make ends meet.Â The kids are hungry, you need to pay rent, your car needs gas but you just canâ€™t pull it together to survive.Â
In this economy, the problem of overwhelming debt is burdening a lot of people.Â But the question is, can you do anything about it?
Chad Fisher, a rep for local law firm that specializes in bankruptcy talks about the various stages of debt and what can be done about it.Â
If you’ve ever amassed too much debt and started receiving bill collector calls at all hours of the night, you know how frustrating and scary it can be. Identifying the warning signs of too much debt can be tricky and depend on a variety of factors.
For example, if you are single and just recently lost your job and had to put $5,000 of living expenses on a credit card, but you found a new job that pays you $80,000 a year, there’s a good chance you can take care of this short term debt issue.
However, if you have a family of four, no job and have been living on credit cards for over 6 months, there’s probably a good chance you have a serious debt problem that needs to be addressed.
If you think you have too much debt, you have options.
The first option is for you to consider going to a debt consolidation company. Debt consolidation would allow you to bundle up all your debts and then make just one single monthly payment. The way it works is the debt consolidation company buys up all of your old debts and then you end up paying the consolidation company instead of the 10 different creditors you used to pay each month. Debt consolidation can work for you if you have a job and a means to pay back the money over the allotted time.
Be very cautious when you approach debt consolidation companies. Some debt companies can charge exorbitant fees and actually increase your monthly payment so you really are no better off than before. You also need to consider how dire your circumstances are. Some people go for debt consolidation help, when they really need to consider filing for bankruptcy and starting over.
Bankruptcy often has a negative social stigma that prevents many people from seeking the help they need. The reality is that bankruptcy allows you a chance to start over and put those annoying bill collector calls behind you. If you live in Northern California, you may want to consider a free consultation with a San Francisco Bankruptcy Lawyer. For personal bankruptcy you will file a Chapter 7 or Chapter 13 bankruptcy depending on your own unique financial situation. Bankruptcy is complicated and requires many different forms to fill out, make sure you get the professional representation you need in this difficult economic environment we are living in.