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What should you do?
Lack of sleep and poor eating caused by constant worry over late pay- ments or unpaid bills can become debilitating. If you feel you’ve used everything you know to try and improve your financial situation, but it hasn’t worked, don’t give up. Credit counselors often have ways to work with creditors and debt col- lectors that are not available to indi- viduals and may have ideas that can get you back on track faster than you think possible. You can regain your financial freedom through a debt management plan.
Repossession or Foreclosure
Debt management plans usually cover unsecured debt only (see page 14). Secured loans such as car loans and home mortgage loans generally are not included in a debt management plan. You will be required to continue to make these payments to creditors. If you are no longer able to make these monthly payments, you are in danger of having your car or property repossessed or losing your home in a foreclosure.
Most financing agreements involving tangible property, including your home, car, furniture, permit the company making the loan to repos- sess your property any time you are in default. In some situations they don’t even have to give you notice. They just show up one day and take it away. To get the property back, you may have to pay the towing and storage costs as well as the full balance of the loan.
The Emotional Price of Debt
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