If your debts are not that old there is a possibility to reduce your debt by negotiating with the credit card company by letting them know that you just do not make enough money to pay them what you owe them. You can tell them your financial situation has turned for the worst and that after expenses you have nothing left to pay them. You can acknowledge that you still want to try to work something out and that bankruptcy is a last resort . For example, if you have a credit card balance of $10,000.00 with an interest rate of 25 percent, if you only pay the minimum it will probably take you five years to pay off and cost you $30,000.00. You can call your credit car company and try to negotiate a lower interest rate. I have personally dealt with credit card companies and have gotten rates in the 6 or 7 percent area which is far more manageable and helps get the the debtor back on track without filing for a bankruptcy. Remember this is something you can do yourself!

Remember a debt consolidation agency takes all of your debt puts it into one lump payment at a supposed lower rate and gives prospective debtors a comfort zone. Most of these agencies charge a fee and the rates are still higher than what you can get on your own! Remember you got yourself into this mess and with this knowledge you can get yourself out of it. When we get to the bankruptcy section of this site I will talk to you more about my insights regarding filing for bankruptcy protection. But one of the issues I have and where I really endorse the notion of bankruptcy is when hard working people come into hard times and truly want to pay everything back but can’t because of the sky high rates these companies charge. If an honest working person can make it by being charged 7 or 8 percent versus 30 percent on their interest rate and the credit card company turns the cold shoulder, then bankruptcy is your back up ammunition so to speak. I have personally dealt with credit card companies in negotiating lower rates and I find its 50/50 on them being receptive. I personally feel that if they do turn the cold shoulder on a debtor who is willing and able to pay with a little help (interest rate reduction) and is denied, THEY DESERVE TO NOT GET ANYTHING AT ALL!