When you get so far in debt you are unable to keep up on your payments, it can seem pretty hopeless. It is hard to get credit when you have been unable to keep your payments current and your credit score has dropped, so you do not know where to turn. With the proper guidance and help, you can get out of debt and rebuild your credit.
There are companies that help you with your financial planning, setting you up on a repayment program to pay off your debt. When you find such a company, check them out with the BBB, then ask for a debt consolidation quote. Debt consolidation quotes will show the amounts you owe and how much each creditor will be paid monthly. It also lets you know how long it will take for you to accomplish this. They work with your creditors to get your payments lowered, as well as finance charges waived in some instances.
At the same time, they help you learn to budget and set up a personal debt management plan, focusing on staying out of trouble and even learning to save money. There are several non profit organizations that do this type of work. Most of these companies charge a fee for their services unless they waive it for financial hardship; however, the initial debt consolidation quote is offered free by legitimate companies
The other popular way to get out of a seemingly hopeless situation is with a secured debt consolidation loan. You need to have a list of all your creditors, so the proceeds are paid to your creditors and you have one big payment to make each month instead of a lot of little ones. This can work very well unless the interest rates you were paying are less than the new one. You also need to make sure you get a fixed rate instead of a variable interest rate.
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