If you skip this section, come back later. If youd rather clean up your credit report or pay off your debts before doing a budget, skip ahead, but be sure to return to this chapter later. You must make a budget as a part of repairing your credit....

Filing for bankruptcy puts into effect the automatic stay. The automatic stay immediately stops your creditors from trying to collect what you owe them. So, at least temporarily, creditors cannot legally take (garnish) your wages, empty your bank account, go after your car, house or other property or cut off your utility service....

Many people arent well-equipped to negotiate with their creditors. Inside, they may feel that they are obliged to make full payment. Or, their creditors may be so hard-nosed that the process is too unpleasant to stomach. And some people just havent honed their negotiation skills. ...

Payday Loans The payday loan industry is growing fast. In many states, these loans are illegal. In others, lenders may offer a similar type of loan, but call it something else. Either way, think twice before you get one of these loans....

Finance companies and similar lenders also make unsecured consolidation loansthat is, they may lend you some money without requiring that you pledge any property as a guarantee that youll pay. But the interest rate on these loans can be astronomical, often reaching 25% or more. Lenders also charge all kinds of feesmany not disclosedbringing the effective interest rate closer to 50%....