Question for financial gurus

**snowcraig2.0** · 01-20-2009, 01:59 PM

I have a friend who went through an illness the past couple of years and wasn't able to work. She accumulated a significant amount of debt during this time, obviously. I was wondering if anyone here knows of any grant programs out there that could help her alleviate this debt? Thanks guys.

**Phaedrus** · 01-20-2009, 02:52 PM

Gosh, snowcraig, I don't think there is such a thing. If it's more than humanly possible to pay off, personal bankruptcy is always an option, though I would recommend trying the Dave Ramsey thing, first.

www.daveramsey.com

Normally, it helps the soul to try everything one can, first, but if it comes down to it, there's a reason for personal bankruptcy. It's important to know, though, how huge the debt number is.

Also, if she decides to take bankruptcy, she really should give up everything. People who reaffirm debt on houses and cars, generally get bit in the butt on that.

I hope and pray she has a good "center" and is able to live in peace with whatever she decides to do.

**snowcraig2.0** · 01-20-2009, 03:02 PM

That's the tough part, she has gotten back on her feet, but that debt is really weighing her down.

**Phaedrus** · 01-20-2009, 03:21 PM

What we're talking about, then, is not a financial problem, but an emotional problem.

Bear with me; the math of the finances is relatively unimportant. What she needs is a plan, and she needs to be actively executing the plan in order to feel better about herself. I like Dave Ramsey's stuff.

What she DOESN'T need is someone selling her a crappy consolidation loan or a "pie in the sky" solution that will leave her further impoverished.

How much money are we talking about, versus her income, anyway?

**Angie** · 01-20-2009, 03:32 PM

Originally Posted by Phaedrus

(post deleted)

1. You can report a post if you have a problem with it, rather than just whining about it publicly. You could also PM, I don't know, any other moderator on the site.

2. If you don't like it, click the red X in the upper right.

Originally Posted by acrozier22

(post deleted) .

Just see above. People have such a problem being moderated, yet it's funny that they seem to call out moderators' behaviors...

**CTAClone** · 01-20-2009, 03:41 PM

But seriously, lets get back on topic and let Snowcraig get some useful information from the real Financial Gurus. I for one am interested in hearing what people have to say about it, and not dwell on 1 or 2 posts.

**snowcraig2.0** · 01-20-2009, 03:45 PM

I appreciate the humor, but could we cut it out now? thanks.

**drmwevr08** · 01-20-2009, 03:50 PM

I agree with some in here - run the numbers with someone who is good with these type things and come up with a plan. Knowing where your going will reduce stress even if its not an easy path. Otherwise, there are some people who really have little choice other than to declare.

**acrozier22** · 01-20-2009, 03:52 PM

Originally Posted by Angie

1. You can report a post if you have a problem with it, rather than just whining about it publicly. You could also PM, I don't know, any other moderator on the site.

2. If you don't like it, click the red X in the upper right.

Just see above. People have such a problem being moderated, yet it's funny that they seem to call out moderators' behaviors...

Why didn't this post get deleted?

**cmoneyr** · 01-20-2009, 03:57 PM

Roffle ban. But I digress. So is this friend of yours able to pay on her debt now? If she is then she needs to plan out a system of some kind, keep making payments, start paying off the smaller debts, if she's feeling like she's swimming in debt alleviating herself from a couple, even if they're small, would feel like a win.

If she's not able to make payments then I don't have any good advice.

**Cyclonesrule91** · 01-20-2009, 03:59 PM

Has she called any of the free debt counseling hotlines? I can't remember the guys name (Tom Coates maybe?) who has commercials on local TV quite a bit. It's free and I assume they would have objective individuals who know what they are doing counsel the person looking for help.

**bufante** · 01-20-2009, 03:59 PM

I think organization is the key. I would suggest some budget management software to get organized.

I would then do some research about grants for whatever her medical problems were, there might be some money out there to help pay for her medical procedures.

Is she a member of a church? It wouldn't hurt to see what sort of programs they might have?

I live and die by a loose budget. We have a plan on what we are spending our money on and for the most part we stick with it. The first priority was paying off any debt, from there expand.

Good luck to her, hope she comes out on top!

**kilgore_trout** · 01-20-2009, 04:12 PM

I guess it would depend on the nature of her debts and magnitude of those debts relative to her income. Sometimes a person needs modify lifestyle things (like the kind of car they drive) as well as upping the hours in their work week (second job) to dig out of a financial hole.

Bankruptcy should be the avenue of last resort.

**puckwarrior** · 01-20-2009, 04:13 PM

Having worked in banking for over 25 years, depending on what type of debt it is, they need to contact the people they owe and try to work out some sort of repayment plan. If they had been in contact with the creditors during the problem years, most financial institutions will work with them. If your friend ignored them for two years and never told them what is happening, they may not care now about her problems of the past. I always reccomend contacting your creditors whenever there is a problem. Most of the time they will work with you if it appears there may be a way out of it in the near future. But too many people just ignore the notices and phone calls and than it is usually too late for the creditors to want to work with you.

**CloneIce** · 01-20-2009, 04:20 PM

If it is the kind of debt people have accumulated through major medical procedures (100s of thousands to save their life or body part) then she may as well declare bankruptcy, rather than ruin her life trying to pay off an impossible debt.