Ill have no alimony or spousal support after the split.
What is the best way to eliminate my debt, i.e., debt forgiveness?
My income is on the poor level, I may add.
Trying to climb out of debt? Here are50 ways to bring in extra money this month.
I have about the same amount in debt.
Also, debt consolidation is not affordable, as I researched this process and the interest is too high.
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You could trycredit counselingfirst with the goal of making your debt more manageable.
(If youd decide to pursue bankruptcy, a credit counseling course will also be required.)
Or they might negotiate with your creditors to allow you to pay off your balances over a longer timeframe.
But if you cant afford your debt payments, bankruptcy is probably the most viable option.
This isnt a decision to enter into lightly, but it sounds like youve done your homework.
The point of bankruptcy is to allow people a clean slate when their debt has become unmanageable.
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One of the biggest downsides to bankruptcy is the impact on your credit.
But often by the time someone files bankruptcy, their credit has already tanked.
If you decide bankruptcy makes sense, be sure to consult with an attorney ASAP.
This is especially important since youre in the middle of a divorce, which could complicate things.
Some offer a free consultation or will offer one for a reasonable fee.
Two points of caution here: First, you may see companies that advertise debt relief or debt forgiveness.
Did you know?
Essentially, you stop making payments to your creditors and pay the debt settlement company instead.
Youll pay the company a fee, usually a percentage of the balance they got forgiven.
Plus you owe ordinary income taxes on any amount that is forgiven.
My other big concern is that you could wind up in this situation again.
It sounds like you have trouble saying no to family members.
Thats a habit youve got to break if youre going to rebuild your finances.
Make it a policy that you dont lend money to anyone moving forward.
That may seem harsh, but its the only way to avoid a repeat of this situation.
Many people find that rebuilding their finances post-bankruptcy is quite doable.
With patience and firmness on your part, I think you could find the fresh start you need.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
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