Any setback can create chaos with your budget. The loss of a job, a divorce, a medical crisis or a home repair emergency are just a few common examples of events that can wipe out your savings and leave your credit overextended. For some, rebounding is just a matter of time. Others fall hopelessly behind and must face the onslaught of creditors calling and sending letters demanding payment.
It's difficult to know how to handle outstanding debt. If your creditors are pressing you or threatening to take legal action against you, you may soon face wage garnishment or a lawsuit.