Grants to Consolidate Debt
How much debt do you have? If your debt to income ratio is greater than 40% you will have difficulty getting a loan for a home. If this ratio (total monthly debt divided by total monthly income) is under 30% then you are doing okay. If you think your debt load is more than you can handle, doing this calculation will give you a better idea if you are actually headed for trouble. Not to mention that if you do this calculation before securing any more debt, you will know whether you should be proceeding with that new credit card!
Chances are if you are reading this, it is because you are in trouble. You’ve read or heard the hype about how the government is supplying free money and grants to consolidate debt are there for the grabbing. Think about this a minute. Can you really see the government paying off your credit cards? Logic would tell you that this is not likely. But that doesn’t stop thousands of people from getting scammed by ads that promise they can get you a piece of that pie.
Okay, so you’ve read the bad news… no bailout for you… but what can you do? Well, for starters you can visit the actual Government grant website at www.grants.gov to see if there is a grant that although it may not pay your debts, may help you increase your income or cut other expenses. For example, you may qualify for a grant towards education, or one to help your small business, or add solar power to your home to reduce your utility bills.
Secondly, seek out the services of a credit counselor. They will advise you on how to work with your creditors to manage your debt more efficiently. For example, you may be able to consolidate the higher interest accounts by using a lower interest one, or get some to lower their interest rate.
As a last resort, if you are facing foreclosure on a home and getting numerous creditor calls and nobody is willing to work with you, it may be time to talk to a bankruptcy attorney. They usually do not charge for an initial consultation and can determine if filing for bankruptcy is an option for you. This is not a step to be taken lightly as it will affect your ability to get credit in the future and will stay on your record for many years.
Bottom line is that there is no “quick fix” for a situation that did not happen quickly to begin with. Don’t ignore the problem though – it won’t go away just by not answering the phone. Eventually your creditors will file lawsuits and go after your paycheck. Start early in communicating with them and you may just get through this. And keep using that ratio calculation to keep an eye on your debt health.