What Are Your Options When You Can’t Pay Back Your Loan?

If you find that you are not able to make your loan repayments in time, you should explore what you can do to lessen your financial damage before it becomes impossible to clean it up. If you don’t pay, you will be declared a defaulter and the total sum outstanding will zoom as to the interest, fees, and penalties accumulate. Your credit score will take a massive hit, and you may even need to file for bankruptcy. So, what are your options?

Make the Payment Late

If you are not in a position to make the due payments in time, consider paying late after saving enough. If you manage to pay within 30 days of the due date, you will generally find that credit bureaus are not informed about the late payments. This means that your credit score does not take a hit and you can seek refinance or consolidation without worry.

Refinance the Debt

Missing out on making credit card payments creates problems mainly because the outstanding amount piles up fast due to the application of high rate of interest and penalties. Seeking refinance for all card dues and personal loan balances from a financier like will allow you to take the benefit of a lower rate of interest and also make your monthly payments more affordable by extending the repayment period.

Securing the Loan

You tend to get far better terms and conditions if you are in a position to secure your new loan by pledging an unencumbered asset. However, the downside is that you could lose it if you default on the payment. This means that if you have staked your home, you could be left without a roof over your head at a time when you don’t have any savings. Even losing your car could prove to be very inconvenient as it may hamper your income.

Negotiate with Lenders

If you anticipate having trouble with making payments due to some life-changing events like a job loss, a divorce or a medical emergency, you should discuss with your lenders who could then allow you a repayment holiday, reduce the rate of interest or even agree to settle the due for substantially less. However, debt settlement is successful only when the lender feels insecure enough to think settling for less is better than getting nothing from a client who’s broke. The credit score will get negatively impacted when you undergo a settlement.

Payment Prioritization

If you are certain that you don’t have enough to pay all the monthly payments required, you need to decide which debts to stop paying off. It is usually wiser to keep paying the secured loans to avoid losing your assets while the unsecured ones can be stopped. While you will end up damaging your credit score, you can minimize the disruption to your life.



When experiencing financial distress, it is best to try debt restructuring by refinancing or consolidation. Remember stopping, deferring or settling debts can injure your credit score and affect your borrowing power.

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Dealing Successfully with Small Business Debt

Often businesses are known to be struggling under overwhelming debts. Taking the correct amount of debt, that too, at the perfect time, could make all the difference between a successful business and a business that is struggling for survival.  As per statistics provided by the SBA (U.S. Small Business Administration) about 50% of small businesses tend to fail during the initial five years predominantly because of lack of capital, overwhelming debt, and poor credit arrangements.

Most businesses would be looking for loans for fortifying their cash situation, for bolstering financial growth and funding expansion plans. However, the past few years have been extremely critical and difficult for small businesses that ended up borrowing excessively without having the capability of making back what they actually owe. These struggling organizations could have survived the economic recession, had they taken a well-informed and sound borrowing decision in the initial stages. However, there is no scope for retrospection once creditors and debt collectors are after you.

In such a financial crisis situation, the small business owner is left with two options for effectively dealing with debt. The business owner may make all efforts to save his small business by trying his best to settle all outstanding debts or accounts. The other alternative is to let his small business fail of course, with an appropriate exit strategy which would be minimizing or mitigating financial consequences.

Save Your Business

The first choice for the business owner is obviously to try and save his business by using money from his own personal funds and diverting it to his own business. This seems to be a calculated risk which till date has failed an equal number of times as it has tasted success. You could choose this solely as a short-term strategy which promises chances of a long-term repayment of the outstanding debt.

Reduce Costs

If you are not in a position to get rid of the business debt by using private funds, it is essential to identify and determine relevant areas where you could do some effective cost-cutting. May be you could consider subleasing unused space or selling off spare equipment. Even though, shrinking your workforce may not be a desirable option, you may need to do that for keeping your business afloat.

Contact Suppliers & Customers

Keep in touch with your customers. Offer attractive markdowns to top customers if they are able to pay you fast. Contact your suppliers and request them for deferred payments and even discounts if possible.

Get in Touch with Your Creditors

The  best debt relief option in case of multiple debts is debt settlement. Try connecting with your debt collectors or creditors and explain to them your predicament. Request lenders to accept lower interest rates, restructure all the existing repayment options, or boost your line of credit. If multiple collection agencies or creditors are running after you, nagging you via phone calls, and taking you away from operating your business seriously, you could get in touch with a legit debt settlement company. They would be negotiating effectively with your creditors for settling all your debts for an amount that is definitely lower than what you had taken out as a loan.

Consolidate Your Loans

You may opt for debt consolidation. The process involves consolidating all your business debts into one single loan and payment that would cut down monthly expenses without impacting your credit score negatively.



When you have tried the above-discussed ways to get out of your small business debts and failed, you may look for remaining alternatives such as selling off the business or liquidating the assets for negotiating a debt settlement with all your creditors. However, when all else fails, you could file for bankruptcy. Of course, it may have some drastic repercussions on your credit report.

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How Social Workers can help you get rid of Debt

Social workers who have additional financial training in areas such as credit and debt can help people tackle their financial challenges. Certified social workers who have the ability to provide financial counseling services work with various people with the aim of improving their financial situations. They also work privately to help couples and individuals with their finances.

Financial Social Work

  • A financial social worker is aware that lack of finance management skills is just one of many reasons why people may have financial troubles. People also deal with the results of the difficult financial circumstances they experienced while growing up such as bankruptcy, gambling and lack of resources. Financial problems are associated with shame, embarrassment and confidence issues.
  • Financial social work has a solid counseling background that is necessary for helping people recover from the mental and emotional sources of their financial challenges. The social worker has financial training or education to help individuals with the basis aspects of finance.
  • Additional certification for social workers in finance helps people overcome their struggles with money. With the ongoing troublesome economic situation, there are several people who have lost their jobs and are looking for the resources they need to pay rent, utilities and sustain their families.



Hiring Social Workers

The clients that hire social workers may be individuals who have dealt with poverty all their lives or on a long-term basis. Such clients require assistance that will enable them to access resources as well as handling basic financial activities such as budgeting and getting out of debt. Learn about easy debt consolidation here.

Licensed social workers with financial training have the option of running their own private practice. Although their clients may not be dealing with poverty of lack of jobs, they may be people who are struggling with financial problems that range from credit card debt to bankruptcy.

Beyond Financial Counseling

Social workers in finance are often to be compared to financial counselors and financial therapists. They may consult other professionals in the finance industry such as bankers and advisors who can give their clients guidance and provide valuable advice. Speaking with financial professionals is important for people who are not familiar with different aspects of financial life such as opening a savings account.

Social workers emphasize dealing with the underlying issues stop people from managing their resources effectively. While it is important to manage your money and learn the skills to it, many individuals who face financial challenges have underlying problems. This may be an addiction to gambling or someone who feels that they can never prosper financially and enjoy a comfortable life. Social workers who deal with financial issues are trained to assist people with such issues.



Couples and Financial Issues


Different attitudes towards money management can result in financial problems for couples. One person may make it impossible for their partner to spend money and this can lead to large bills from credit cards to cater for the children’s needs. The combination of a social worker who is available to help and a couple that is willing to sort out financial differences can effectively resolve money issues. 

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Settling Debt- Negotiating Repayment Plans with Creditors

Settling debt can help individuals deal with their financial problems. It allows you to formulate a plan that is aimed at eliminating debt eventually. The plan guides you though the settlement process after establishing your overall financial status.

When finances are dire, getting out of debt as soon as possible is an appealing prospect. Settling debts such as credit cards for a lower amount than you owe helps to ease financial distress. Debt settlement is an option for consumers who experience actual financial hardship and you can hire a professional to help you settle debts and make smaller payments within a specified period of time.

Debt Settlement and Credit

  • The frustration of unpaid debts can disrupt your life and paying off debt is a financially responsible undertaking. Various debts are eligible for settlement programs. When you choose to settle your debt, you need to be aware of what you are committing to. Settling debt requires you to negotiate repayment for a lower amount than what you actually owe.
  • Settling debt is certainly preferable to not making any payment. If you do not find a way to pay off debts, your credit scores are likely to decline. With debt settlement, your credit score will recover over time unlike paying nothing while you wait for your debt to disappear.
  •  Negotiating a settlement has a better impact on credit scores than allowing debt to linger without taking any action. Find debt settlement reviews here.
  •  Lenders often look at repayment attempts as a good indication of the debtor’s willingness to clear the debt. Agreeing to a debt settlement means that the creditor accepts it as full payment.



Hiring Debt Settlement Companies

  •  Negotiating a settlement debt is one of the ways to handle debt when you are finding it difficult to make payments. After selecting a company that will help you deal with your debt, you will get an opportunity to discuss details of what your debt settlement program entails.
  • Studying your finances makes it possible to determine exactly how much you will afford for payments to creditors. This also includes finding out how much you should put aside to cover your basic needs.
  •  Debt settlement companies can help you develop debt settlement plans and guide you during the process. When debt problems are beyond your control, it is reassuring to know that there are debt experts who are ready to offer assistance.
  •  Debt settlement is among the crucial debt relief services that are provided. The company acts on the client’s behalf to try and negotiate with creditors to settle debts for payments that are less than you owe.
  • Settlement is a solution that works when creditors are willing to participate in the negotiations and reach an agreement that favors both the parties that are involved.







Debt settlement plans pave the way for paying what you owe but you also need to learn how to control your spending. Successful negotiations and paying for debts does not mean that you should go back to the habit of overspending and piling on debt. Discipline and curbing spending are necessary for getting you finances back on track. 

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My Angel

My Angel saved my life 

She relinquished all my strife 

The gangs, drugs, hoes galore 

It seemed like every week i was with some whore 

She saw the good in me and took a chance 

Saved my life made me take a different stance 

Helped me beat my internal battle helped me be myself 

Helped me not pursue lust, your love is my everlasting wealth 

Without you I would be in jail on drugs a father or dead 

You saved me from drowning in life's temptations, now I look straight ahead 

And i see you my Angel shining, giving me your arm helping me stay straight 

Helping be myself, the amazing person I am is because of you and it is great 

Together we are unstoppable, you saved me it's all because of you 

You are my Angel, and I love you with every ounce of my heart soul and mind, and that my Angel is true 

Author's Notes/Comments: 

68 days into eternity 

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I get on one knee

I get on one knee



and plant a seed


corn squash & bean

“marry me 

Spring and Autumn;

be mine

and I’m 


forever yours,”