Help for Those Drowning in Debt

Perhaps your worst fears were realized when you got to the third payment you were behind on your mortgage. It could have been losing your life's savings when the stock market tanked. Maybe the extended illness or death of a loved one has drained your retirement account. It doesn't matter why you are in this situation right now. What matters is surviving the situation. Recently finding ourselves in dire straits financially, I struggled between pride and the need to provide for my family. My family's needs won out, and I began a desperate attempt to locate help. Here is what I found.

TO FIND LOCAL SERVICES AND BENEFITS, CALL 211.

Most states have a benefit line available by dialing 211. Operators and sometimes social workers staff the lines, and have access to a database that tells what benefits are available in your area. Be prepared to give your zip code and tell your story concisely. Make sure you specifically mention what you need. For example, "I can' pay my electricity and utility bills. I am behind with my mortgage payment, and I can't afford my child's medicine." When I told my story, my operator brought in a social worker to confer with us. Between the 211 database and the social worker's knowledge of programs, I came out of the call with numbers to call to reduce my electric bills, possibly stop foreclosure and lower my mortgage payments, and how to apply for social security disability for my eleven year old son (I didn't know he would even be close to eligible). The calls for benefit searches are anonymous. 211 also allows you to apply for state benefits like Medicaid and Food Stamps by going through a different menu option.

FOR HELP REDUCING YOUR GROCERY BILL

Most places have a Food Stamp program of some sort. For pregnant women and young children, the WIC (Women Infants and Children) program provides juice, milk, and other healthy staples to pregnant and nursing moms, formula and other things to babies and little ones. Further, Food Stamps can be used for most any type of food, and helps allow money for diapers or other bills that would have been spent on groceries.

For those who aren't in dire enough straits to go the public benefits route, contact Angel Food Networks to find a local distribution center in your area. Distribution centers are usually churches. There is no application process or income guidelines. Each month, there is a different menu. For $30.00 you order a box (or boxes) of food for the month. For October, there are rib eye steaks, chicken breasts, meat loaf, fajita meat, eggs, tortillas, dessert, pork chops, vegetables, and other goodies worth about $85.00. There are also special order boxes for $18-$21 that provide additional meat or vegetables, and there is a senior box that provides ten pre-made, perfectly seasoned meals for only $28.00. Seniors can simply heat and eat. After you order on the specified day of the month, you go back two weeks later and pick up your boxes. The food is fresh and comes from companies like Tyson, Conagra, and other reliable name brands.

FINANCIAL COUNSELORS

Contact a financial counselor. We contacted Consumer Credit Counseling Services after several hours of web research. CCCS is reputable and is non profit. The agency is working with me to help me get my budget balanced, and to negotiate with my mortgage company to lower my payments and help me avoid foreclosure.

BANKRUPTCY

Bankruptcy is helpful if you have a lot of unsecured debt like credit cards and medial bills, or if you are behind on secured debt, but can afford to pay your usual monthly payment plus some extra for arrears. This option is not to be taken lightly, as it remains part of your credit history for up to ten years.

Though no one wants to find themselves in these types of situations, but sometimes we have to let go of our pride. Asking for help when we need it allows us to hold on to some of our dignity and still care for ourselves and our families. Keep in mind that assistance is most often a temporary pick-me-up until we can get ourselves back on our feet again. Check with these sources, and look for others. The key today is to survive the economic downturn with a place to live, a car to drive, and food to eat. Thankfully, there is help out there.