When You Can’t Pay

It’s a terrible feeling to have a stack of bills that you have no way to pay. Even the minimum payments would keep the wolves from the door, but you can’t even do that. You are scared, frustrated and irritable. You are losing sleep, productivity at work, and any joy in life. You see no solution. Fortunately, no matter how bad your situation may be, there are solutions, and you can now get smart and incorporate the best settlement solutions today.

How Bad is It?

First, you have to sit down and realistically look at your debt. How late are you in your payments and what hope do you truly have to get current? The creditors are calling and the late fees are mounting, so each month even the minimum payment is growing. You are probably realizing that you will not be able to get current without a lottery win or an inheritance. Given that these are not likely, you need to look at debt settlement.

For the Do-It-Your-Selfer

If you decide to tackle settlement with your creditors by yourself, you need to first educate yourself in the process. Further, you need time and stamina, as well as excellent negotiation skills to reach a beneficial resolution. But, many have done it, and you can too. Review the following and then study further.

1. Do not tell creditors or collectors that you will be paying them soon. They need to understand that you have no way to get current on this debt or they will not negotiate.
2. Tell the callers not to call you at work. If you are dealing with the original creditor, ask for lower interest rate, elimination of late and other fees, and a lower total debt amount. They may say “no” at first, but stick with it. Keep repeating that you cannot pay them and are considering bankruptcy. They will negotiate rather than face no payment at all, so this puts you in a stronger position. Some individuals have been able to achieve a 50% reduction of the total debt and a lower interest rate as well.
3. If you are dealing with a collection firm, tell them not to call you at home either. You will need to put this in writing and insist that all communication from this point forward be in written form. Send all correspondence by registered mail and keep copies. Ask for a debt validation, giving the amount of the original loan, any additional fees that have been tacked on, and sometimes, the indication of whether the debt has been transferred or sold. If transferred, the collector is working for a percentage of whatever he can collect. If the collect has bought your debt, he did so for just pennies on the dollar, and you can begin your negotiations at 35%.
4. If you do not have the stamina or skills to complete these processes yourself, employ the services of a settlement professional. There will be fees involved, but the resolution may save you a great deal of money in the long run and certainly serve to lower your monthly payment, which will now be made to the settlement agent and distributed to each of your creditors until the debt is paid.

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Symptoms of Too Much Help

If you are dreading the task of paying bills each month, chances are you know that you have trouble. You may be paying the bills and then facing not enough money to meet your basic needs. You may be skipping some payments because there is just not enough to go around. You may be more than a month late, and creditors are calling. The emotional and potential consequences of these situations are all negative. You are worried and anxious; there is discord in the family; the stress can cause serious physical conditions, to include ulcers, high blood pressure, heart disease, even stroke. The situation is not worth the loss of peace and joy. You can brink back the blue bird of financial happiness, no matter what your situation is.

If You Are Current

If your bill payments are current, but you are struggling with finances to make them, you need to consider a bill consolidation loan. The goal is to roll all of your current debts into one large loan, the payment for which is lower than the combination of the former payments. If credit is still good and you have equity in a home, an equity loan or complete re-finance mortgage, taking enough cash out to eliminate the credit and revolving debt, is your best bet. Interest rates on these types of loans will be less, and the money you pay back is re-building your equity. If you do not have mortgage equity but your credit rating has remained excellent, you can probably get a personal loan from a credit union or bank.

In any consolidation of this type, you need to be certain that you cut up your credit cards, leaving only one for emergencies, until the consolidation debt is completely paid off. To get back into the debt cycle again, would be reckless and only result in more debt payment.

If You Are Not Current

If you have late or missed payments, your credit rating has been damaged, and you will not able to access home equity or secure a personal loan. In this instance, you will need to employ the services of a reputable consolidation specialist. There are a number of nonprofit organizations which assist you in this endeavor, as well as for profit firms. Both firms will charge fees for the services they offer, so be careful in researching and selecting that consolidator that best meets your needs and whose reputation you have checked out. Good consolidators will provide other services as well, such as counseling, the development of a realistic budget, and follow-up to be certain you keep on track as you make your new payment each month. They will give you strategies to change your spending behaviors and to ensure that you can stay on track and get that joy back into your life.

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When Debt Settlement is Right

You are drowning in credit card and revolving debt loan payments. Your income is not enough to make all the payments and meet your essential needs as well. You have missed payments to several creditors, and they are calling. You don’t know what to tell them and you are stressed and scared. You do not see any way out because, short of winning the lottery, you have no way to get current on your debt. Your credit rating has been so damaged that no lending institution will consider a consolidation loan. Is your financial happiness gone? Of course it is! Debt settlement brings it back.

The Options for Debt Settlement

Debt settlement involves negotiations with creditors and/or collection firms in order to secure a much more favorable debt obligation. This process cannot be begun unless the debtor is at least 60 days in arrears, for a creditor will not be motivated to settle unless he has a fear that he will not be paid at all. Debt settlement can be completed by the debtor himself or by a professional who is employed to complete the process.

The following tips will help you if you decide to proceed on your own:

1. Do not give a creditor any kind of hope that you will be able to get current on this debt. Tell him that you have no way to make these payments.
2. Tell the creditor not to call you at work.
3. Tell the creditor that you could possibly make payments if he would be willing to remove late fees, lower the interest rate and lower the overall debt amount. Begin your negotiations at 50% of the original debt. He may say “no” at first, but be persistent. The longer he goes without any payment, the more willing he may be to negotiate.
4. If a collection firm is involved, you will need to follow some different strategies. Ask for a debt validation in writing. This will provide the name of the original creditor, the amount of the original debt, and other information that may be critical. If the creditor has transferred the debt, the collector is working on a percentage of whatever he is able to collect. If the debt has been sold to the collector, he has bought it for pennies on the dollar, and your negotiating position is stronger. Tell the collector to stop calling you at work. Send a registered letter telling the collector not to call you at home. Keep copies of all correspondence. Once an agreement has been reached, be certain to get it in writing.

If all of this sounds time consuming, you are right. It takes lots of time and some real skill in negotiation. For this reason, many debtors employ the services of a settlement professional that has the contacts, the skills and the time to get the job done. Be certain to check references and fees before you sign a contract.

Once you have reached settlement with your creditors, breathe a sigh of relief and make your new payments on time. You have just saved thousands of dollars in high interest and are on your way to financial freedom.

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Some Initial Facts

Americans are almost $700 billion in debt to credit cards and revolving debt loans. And 70% of them say their debt is becoming overwhelming, that is, almost too much to be able to pay. We have enjoyed living in a society in which plastic can buy anything we want right now, and everywhere we are encouraged to do so. Even our government is projecting a $400 billion dollar deficit for 2008, and no one is showing any panic. The difference is, the government does not have to make those monthly payments you do, and does not have creditors calling daily when those payments are not made. There is now an entire industry dedicated to helping people reduce and eliminate their debt, and expert advice is now available for the average consumer. You can achieve a position in which you never let debt loans dent your finances again.

What the Experts Say about Debt Elimination

The experts know that debt reduction and elimination take commitment and self-discipline. They will not tell you it is painless, but they will tell you that once you have achieved a debt-free lifestyle, you will enjoy a new type of freedom and security you haven’t known before. Being debt free, moreover, allows a consumer to pay cash for anything he/she wants as well as to save and invest for a financially secure future. You got into debt easily. Getting out will not be so easy, but get out you must. You are wasting thousands of dollars in interest on debt that could be going toward your long-term financial goals. The other important point made by the experts is that no situation is so bad that it cannot be remedied by some strategy.

Analyze Your Circumstances

The first step is to analyze your current situation. You will fall into one of the following general categories:

1. You are meeting your current monthly debt obligations, usually with minimum payments, but if emergencies and large expenses come up, you will need to charge those.
2. You are late on one or more payments to creditors, and you are stretching your budget as far as it can go.
3. You are terribly late on several payments and creditors and/or collection firms are calling daily
4. Your accounts have all been turned over for collection and you have no way to meet your obligations.

The Solutions

Solutions range from mild to drastic, but there is one for you. Consider the following expert advice:

1. Hunker down and eliminate all spending except the bare necessities. Place all excess cash on one debt at a time until it is paid off. Any windfall money, such as a tax refund must go toward debt payment. This can be a lengthy process and requires significant self-discipline and a willingness to cut up credit cards.
2. Secure an equity loan or a re-finance of a current mortgage in order to pull out enough cash to pay off the debt. These are great options if credit rating is still good. Again, commit to cutting up credit cards.
3. Look at consolidation, by securing one large loan with a lower monthly payment.
4. If a debtor is late on several payments, debt settlement may be the answer. Negotiations must occur with creditors to get the best possible compromise, in lowered interest rates, elimination of late and over-the-limit fees, and a total debt reduction. Debtors have done this on their own but it takes time and skills. Most people who opt for this employ the services of an attorney or other debt settlement professional.
5. Bankruptcy is certainly a final option, either a Chapter 13 or a Chapter 7, depending on individual state law and an attorney’s advice.

Options 3, 4, or 5 will require some leg work and research as well as a good knowledge of the law in the debtor’s state. In all instances, however, it will be necessary to eliminate the temptation of further debt by cutting up credit cards and closing loan accounts. Further, the debtor must understand the consequences relative to credit rating.

The important positive aspect of reducing and eliminating debt is that the consumer has the opportunity to get back on track and to get to a point at which savings and investment can occur. No one is really financially secure until there is the security of savings, and this has to be the ultimate goal.

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Learning Personal Finance

Until recently, secondary schools did not have courses in personal finance. Students entered the world of work without the skills to develop a budget, to determine how much debt is too much, and to understand the importance of planning for regular savings. Without these skills, along with the societal pressure for immediate gratification, it has been easy for consumers to get into great debt early in their adulthood and to remain in debt throughout their entire lives. Consumer debt may be an accepted fact of life, but it is not ideal and can certainly become overwhelming if spending habits are not changed. In the absence of formal training, you can, at any age, educate your financially and eliminate your debt by taking correct steps as recommended by all experts.

The Steps

1. If you have never had formal training, you probably are not adept in the process of budget development. You cannot possibly become a responsible consumer if you do not have a budget, for it is the plan by which you manage your finances month by month. If you are not managing your finances, chances are you are increasing your debt without knowing if it is too much to reasonably have. You can develop a budget by totaling your net income each month and subtracting from it the absolute essential expenses, such as rent or mortgage, utilities, car and insurance payments, groceries, gas, etc. The remainder is what you have left for non-essential expenses and debt payment. If there is not enough left, you are in trouble and need to develop a plan for getting out of debt.
2. Stop charging this moment. Cut up all of your cards but one, which you put away for emergency use only. At least your debt will not increase.
3. Attack one debt at a time, starting with the smallest total. Dump every penny you can on this debt, always making more than the minimum payment. Every bit you can pay beyond the minimum payment goes directly to the principle of the debt. As well, pay this as soon as the bill arrives. Waiting until the due date allows the creditor to charge additional days of interest on the unpaid balance. You must do everything possible to stop the bleeding of money due to interest.
4. As you pay off each debt, all of that payment must now be applied to the next debt. Be sure to reward yourself with some small splurge as you pay each debt off, because these are important benchmarks for you. Celebrate!
5. Consider debt consolidation if you are getting behind in payments and do not see a way out of this situation. Getting one loan to pay off all of the others can get you a lower single monthly payment and get you more organized. Again, cut up your credit cards!
6. Use bankruptcy if your debt is so overwhelming that only a fresh start is a plausible solution. Your credit rating will suffer initially, but there are ways to repair it in an organized sequential manner. Consult an attorney who will advise you on which type of bankruptcy fits your situation and who can counsel you on credit repair following the action.

Once your debt is eliminated, you will need to do some self-educating on means to avoid recurrence of the same situation. Becoming a responsible consumer really involves not spending money you do not have, unless it is for a major purchase with lasting value, such as a home.

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The Value of a Debt-Free Existence

No one can dispute the wonderful feeling of serenity and comfort when one can state that he/she truly owes no money to anyone. There is no stress and discord when the mail arrives each day, and no loss of sleep wondering how to get debt paid off. The additional value of being debt-free, however, is they way you can make the most of your personal financial position to begin to accumulate great amounts of savings for your future financially independent lifestyle.

Become Debt-Free

No matter how much debt you may now have, you do have the means to eliminate that debt by choosing from a variety of options. Even the most stressed debtor with overwhelming debt that cannot be met on a monthly basis, has options to clean up the mess. Among the options are the following:

1. Attack each credit card or revolving debt, one at a time, dumping every penny available on one debt at a time until it is eliminated. This will require suspension of non-essential expenses, but the benefits will be so worth it. Ease the pain and motivate yourself by one splurge or reward as each debt is paid off. Confide in a friend so that there is support and encouragement. Announce your intention to as many as you wish to tell. When others know what you intend to do, you are more apt to stick with your plan.
2. Get rid of your credit cards. Cut them up and cut up any replacement cards that may come in the mail. It is usually wise not to close the accounts, because that can damage your credit rating some. If you do not have the self-control, however, close the accounts. Your credit score is not the big concern right now.
3. Don’t trade your car in as soon as it is paid for. Continue to drive it for two more years. The savings of not having a car payment will be substantial and can be used to pay off other existing debt or placed in savings.
4. Consider a counseling or consolidation professional if you are unable to accomplish debt elimination yourself. They will negotiate with your creditors for lower total debt amount and help you secure a consolidation loan if necessary. The fees you pay will be well worth it if you cannot do it yourself.
5. If you are completely drowning in debt, consider bankruptcy. Chapter 13 will establish lower overall debt and monthly payments you can afford for a 3-5 year period. Chapter 7, more difficult to get, will eliminate your debt entirely, but consulting an attorney will be necessary for either of these steps.

You are Debt Free – Now What?

The other value of being debt free is the opportunity you now have to begin to accumulate savings and investments at a much faster rate. All of that money that was going to pay off debt can now go into interest-bearing savings or dividend-paying investments. If that savings interest and investment dividend is re-invested, it simply allows additional growth. Savings and investments accumulates quickly if not touched, so be certain to keep some amount of money each month for current enjoyment.

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The Vicious Cycle of Debt

When one gets into significant debt, it is very difficult to get out. But getting out is absolutely critical if one is to avoid the stress and anxiety of always owing money to others and having to continue to accumulate debt because current payments do not allow the savings cushion necessary when emergencies arise.

Steps to Eliminate Debt

There are a number of options to eliminate debt, and each debtor will have to decide on the correct path for himself.

1. If payments are affordable and there is any disposable income each month, then the process will be sequential and progressive. Any disposable income will be placed on the smallest of the debts until that debt is eliminated. All of the amount paid on that first debt will not be added to the normal payment of the second debt, and so on, until all debt is paid off. The additional commitment of cutting up credit cards will be a solution to incurring further debt. Most individuals, who adopt this path, keep one credit card to be used for emergency purposes only.
2. If a debtor knows that he does not have the self-control to practice an organized debt payoff plan, he should find another who is willing to take charge. This may be a trusted relative or friend. This method involves turning all income over to the trusted individual who in turn supplies the debtor with an allowance for necessary expenses. This third party then takes charge of getting the debt paid off. As well, credit cards are turned over to this third party, so that the temptation to use them is eliminated.
3. A debt consolidation loan can be secured to pay off all existing debt, obtaining one payment which is lower than the others combined. Again, the use of credit cards for any further purchases must be eliminated in some way, preferably by cutting up the cards, maintaining only one for emergencies.
4. Employment of debt counseling/consolidation specialists can be beneficial because they are often able to negotiate lower total debt amounts with creditors and assist in the securing of a debt consolidation loan.
5. Bankruptcy is a serious step but is often necessary if debt is overwhelming and the payments cannot be paid with current income. The negative impact on a credit rating is certainly a consideration, but this action does serve to give the debtor a fresh start.

Once Debt is Eliminated

The purpose of debt elimination is not simply to get oneself debt-free for the short-term. The purpose is to put someone on the path to remaining debt-free for the rest of his life. An unadulterated debt-free financial life requires key commitments and practices as follows;

1. Nothing is purchased unless there is cash to pay for it. Amounts charged on credit cards are no more than can be paid in full when the bill arrives.
2. Credit cards are used for emergencies only.
3. No luxury item is purchased nor any entertainment cost incurred unless there is cash on hand to pay for them.
4. A regular savings and investment plan is set up and strictly followed. This accumulated savings may be transferred to higher interest paying investments as amounts allow. Retirement savings is regularly accumulated as well.

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Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.
Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.
Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.

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Why Debt-Free Life is Attractive

Every consumer has debt. No one likes to be in debt, but it is a fact of life throughout most stages of your financial career. Some are in debt the day they die of old age. How much better life would be if you had the financial freedom of being debt-free as soon as possible and to remain debt-free throughout the remainder of your lifetime. You have the freedom to use your disposable income to enjoy a better lifestyle and to accumulate savings and investments for an early and comfortable retirement How to find the most suitable route to a debt-free financial career will depend upon your circumstances, the steadfastness of your goal to be debt-free, and your ability to practice self-discipline.

The Routes

1. The first step to becoming debt-free is to pay off all high interest bad debt, that is, debt for which there are no assets. The most prevalent debt of this type is from credit cards. Americans seem to have this need for the power of plastic, but they use this plastic to engage in deficit spending, purchasing goods and services that are truly beyond their means. To become debt free, this practice has to stop immediately with a decision that only a dire emergency for which there is not cash will ever be put on a credit card again. One by one, credit card debt must be eliminated, only one card being retained for emergency.
2. Once the bad debt is eliminated, put an eye on eliminating the debt for which there is collateral. This debt would include car and mortgage payments. If there is other debt for furniture and appliances, etc., these should be paid first.
3. Begin,as soon as possible, a regular and sequential savings and investment plan. Without doing this, emergency expenses that crop up will have to be put on credit. As well, the interest and dividend income from these savings and investments can add to monthly income and allow a nicer lifestyle.
4. Debt Consolidation: If you are in a situation of late or missed payments, you need to take action to get rid of your debt as quickly as possible. There are terrible fees and interest rate hikes when you get into this situation. You will need to contact creditors, or employ the services of a professional who will do so, to reduce the total amount of debt by as much as possible. Once the new amounts are negotiated (and these can be as much as 50%), you will need to make arrangements for new payment amounts to the original creditors or secure a consolidation loan to pay off all original creditors.
5. Bankruptcy should be considered as a last resort, but can be a method of gaining a fresh start, with debt wiped out or significantly reduced. This action will affect your financial profile for a 10-year period, but the further you get away from the bankruptcy, the more credit-worthy you will become. The other caveat of this action is that you must commit to a major change in spending habits, so that you do not purchase anything for which you do not have cash.

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What is a Payday Loan?

They are advertised everywhere – television, radio, the Internet.  Just pop into your nearest payday loan center, with your most recent pay stub, and receive an advance loan against your next paycheck.  Fast and easy!  The details of the loan, however, are pretty harsh.

1. The interest rate is exorbitant.  You will be paying a huge amount for this quick and easy loan.

If you cannot make the payment when due, you must then set up payment arrangements, with penalties and additional interest added.

The Fatal Cycle

When a true financial emergency occurs, and there is simply no other way to obtain the cash needed, a payday loan may be used as a last resort.  Most often, however, these loans are given to individuals who do not budget properly and find themselves out of money for groceries or bills before their next payday.  The cycle then begins.  When the paycheck comes, the payday loan must be paid off, and then there will not be enough money for the next round of bills.  Another payday loan is then taken out.  Bad plan!  If an individual does not have enough income to meet his/her regular monthly obligations, a payday loan will only make the situation worse.  It will be a never-ending process, with the individual securing larger and larger loans each time.

Breaking the Cycle

The way out of this cycle may be a bit painful and will certainly require some self control.  First, commit to no more payday loans.  Pay the last one off.  Seek debt counseling immediately.  There are non-profit organizations that will assist in setting up a budget and contacting current creditors to make arrangements for payments that will fit into the budget, and any late fees and interest will be far less than that from the payday loan.  The new plan may require the sacrifice of luxuries or a temporary part-time second job, but these are far better options than the bleeding of money that occurs with payday loans.

Another option may be to consolidate current credit card and revolving debt into a consolidation loan, securing a payment that can be afforded with current income.  One might also consider using an income tax return to pay off some debt, thus reducing overall monthly obligations.  Still another option would be to borrow from a relative, with a strict repayment schedule that will not jeopardize that relationship.

Whatever plan is developed and implemented, it will be far better than the destructive run to the payday loan center. 

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