The Problem:

Because of something unexpected – a job layoff, hours cut, or sudden illness – your income is not what it once was.  The thing is, though, that your bills are pretty much the same.  The same expenses come around each month – rent, groceries, electricity, gas to get to work.  And then, there are the credit cards.  Most of them have a hefty balance, and even if you were to pay the minimum amount – which you can’t, always – the interest just keeps accruing.  The due date is before your payday, when funds are lowest, so by the time you get money to send, half of it goes to the large late fee.  And when you can no longer afford to pay unsecured creditors even the minimum, and must use all of your money for essentials , the huge default rate of interest, late fees, and over the limit fees explode the balance until it’s something you can’t even think about.

So, the creditors are calling, early and often.  They don’t seem interested in hearing you describe your circumstances.  You certainly intend to pay your debts, but cannot spare that money right now.  And still they call, some of them telling you to borrow, get a second job, have family members pay.  They may even tell you that they can take part of your wages, or put you in jail. 

Eventually, you become overwhelmed.  Your stress level is exhausting.  You are sleepless, your mind stuck in a cycle of anxiety, wondering what’s going to happen.  How will you pay for the electricity when it’s been so cold out, and what if the car breaks down?  What if the kids get sick and you can’t afford the doctor bill?   What will the landlord do if we can’t pay the rent on time?  Will they take the car if I miss another payment?

At that point, you can’t even bring yourself to open the envelopes that you know contain a demand for money.  It’s not like you can afford to pay them, so why bother to stress yourself out more by looking at them and being reminded of how much debt you have?  Maybe if you ignore it long enough, it will go away.

Except that it doesn’t.  One day you may answer the door to find a sheriff handing you court papers.  You’re not sure what they mean, or what to do, and you sure can’t afford an attorney!  More stress – can they take my car?  Can they sell my house?  Can they take my wages?  Can they put me in jail?  Can they take my pension?  My savings?  My tax refund?

The Solution:

You are not alone.  While it feels lonely, and you feel isolated, and maybe ashamed or bad about your situation – know that there are thousands of folks just like you in this state alone.  Knowledge is power, and it is liberating.  North Carolina has some of the most consumer-friendly laws in the US.  We can help you figure out what to expect, what your options are, and what the best way to work out your situation might be.