You, like most California residents and individuals across the country, likely have some form of debt. While your outstanding balances may have once been easily managed, you may have found yourself struggling to keep up with payments due to unexpected life events or other issues. Now, your debt has become so overwhelming that you feel uncertain whether you will ever have the ability to pay it back.
California readers who are overwhelmed by debt may know that bankruptcy could be a reasonable option for them. Filing for bankruptcy may not be your first choice, but it could be a way to obtain a better financial future that is free from the threat of losing your home and the harassment from creditors.
A job loss, a divorce or a medical emergency are some of the most common events that can send a family budget into crisis. If you experienced any of these, you know how difficult it is to bounce back. You can take a part-time job and cut back on expenses, but there are only so many hours in a day and so many extras to cut from your budget.
If you have been keeping up with your expenses, making ends meet and even socking a little away for a modest vacation or home repairs, you may have felt discouraged when you or a loved one suffered a chronic or sudden illness or a debilitating injury.
If you woke up this morning with a tension headache or a knot in your stomach because of your financial situation, it is probably not the first time. In fact, you know things have gotten bad if you start your day by planning how to avoid your creditors. Knowing that at a certain time of day the phone calls will start certainly doesn't make it easy to greet the day with any positivity.
Whether you got behind on your mortgage loan payments over time or due to a catastrophic event such as a job loss or medical emergency, your lender is knocking on your door for payment. In fact, your lender may already be threatening to foreclose on your home.
You've probably read a novel or two set in the 1800s (perhaps Dickens?) where one or more characters were tossed into debtors' prisons for being unable to satisfy their debts. Such fiction stories are typically full of tragic circumstances, such as families living in cold, dark and damp dwellings while their breadwinner husbands and fathers spend months or years behind bars simply because they couldn't earn enough income to make ends meet. Thankfully, such tales of old are far from today's reality although certain aspects may remain.
You may have always considered yourself someone who took proactive approaches when it came to handling your finances. You may have saved, budgeted and taken other actions that would help keep you on track with expenses. However, unexpected situations can hit anyone, and you may now find yourself with considerable debt due to medical expenses, job loss or any number of other significant life changes.
Debt consolidation seems like a pretty great thing when you are struggling to meet your financial obligations. Who wouldn't want to combine everything into one low monthly payment? Sounds like a pretty sweet deal, but is it? California residents who are considering this option should probably wait on their decision to consolidate until they learn more about it.
Financial troubles can lead to various complications, including leaving a person unable to meet his or her financial obligations. When bills go unpaid, creditors start calling, notices of foreclosure start arriving in the mail and threats of repossession may begin. The thought of losing personal property is not only overwhelming, it is embarrassing and a threat to your way of life.