[Jax]

Hi there, here is the story:

my finance is involved with a debt consolidation company to pay off credit cards problem is we can't afford the monthly payments anymore and they were the cheapest company. We just had a baby and it's cheaper for me to stay home than to pay for daycare where we live so we don't have my income. We got a summons for court today from one of the creditors filing a lawsuit even though we are working with debt consolidation. Now I'm scared they will put a judgement against us. We are considering bankruptcy because we can no longer afford the payments to debt consolidation. Anyone been through this? How did it turn out? Any suggestions? I wish credit cards didn't exist! they are to easy to get behind on especially when you hit hard times. Guess no one would use them if we ever thought it would come a day we might not be able to pay it back. Please help!

[Robin]

Bankruptcy may be your best option.

It can relieve a lot of your financial pressures, and should prevent you from getting additional credit for a time, so that you can work on straightening things out. Get a free referral with a lawyer and explore your options. Best of luck.

[Robin]

Depending on how deep you are in debt, bankruptcy may be your best option as i told you before. The first thing you need to do is see what your "credit status" is. It may not be as bad as you think. Go to ( www.annualcreditreport.com) and get free copies of your credit reports from all three of the credit reporting agencies (Experian, Trans Union and Equifax). try... I know it's easier to avoid the creditors when they call non-stop (especially since you just had a new baby) but now is the time to play "Let's make a Deal". The Creditors just want SOMETHING, ANYTHING. And they are human. Let them know your situation (the fact that you have a new baby and your funds are limited) and how much you are able to pay, even if it's just $10-15 bucks a month. They would rather get a small, consistent amount a money from you than to write-off the debt completely.

[Clara]

Hey, lot of people are going through the same thing including myself. I have been researching different options. I am finding out that debt consolidation is not as good as it sounds. You still have to make the payments to them they just do the bargaining for you with the credit card company for lower rates and you are paying them allot of money for what you can do yourself. Although I'm not sure you can still bargain with them after you have signed up with a service. My advise to you is file bankruptcy. Yo're young stay home and enjoy your baby. This mess will all be over by the time you really have to start providing for your son or daughter with Money let this be a lesson to stay away from the credit card, that's my opinion..