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I Can't Pay That Back!
Oh no! I have a 500$ debt to my electric company that I can't pay! If I continue to not pay, a collection will be issued, my credit score will be impacted, and I may even get sued (Section 4.2). In addition, I probably will not have access to electricity until I pay back the debt. What do I do? -
Creating a Plan
If my debtors are being hostile, I can consult a debt relief agency for help with my debt (Section 4.2). They can help set up an arrangement between me and my creditor so that I can pay off the debt slowly over time so it doesn't appear on records and affect my finances. -
The Plan
Let's say I owe 500$. Using the debt relief agency, I arrange to pay 50 dollars a month toward the loan for 11 months (paying extra for interest). This way, the debt and interest will be paid in full and the issue will be resolved in 11 months. If I still cannot pay, and my debts pile up, I may consider declaring bankruptcy. This action has serious negative consequences, but if necessary, it will allow me a clean slate (Section 4.2).