Are you having problems paying your bills? Are you getting notices from bill collectors? Are your debts being charged off or sold and then turned over to debt collectors? Are you worried about losing your home, car or other assets?

You’re not alone. Many people face a financial crisis some time in their lives and more people are experiencing the worst financial circumstances of their lives right now. Whether the crisis is a result of personal issues, unexpected medical problems or family illness, the loss of a job, or bad money management, it can cause great stress, destroy marriages and ruin lives. With the right attitude, some good financial advice and a planned budget, the financial problems that seem insurmountable can be overcome.

If you or somebody you know is having financial problems, consider these options: disciplined budgeting, credit counseling from a trustworthy resource, debt negotiation, or bankruptcy. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your plans for the future.

Just because a debt negotiation company describes itself as a “nonprofit” organization, there’s no guarantee that the services they offer are legitimate. There also is no guarantee that a creditor will accept partial payment of a legitimate debt. In fact, if you quit making payments on a debt, late fees and interest are accrued to the balance each month. If you go over your credit limit, other(a) fees and charges also can be added. This can cause your original balance to add up quickly. What’s more, a credit card debt consolidation company can charge borrowers high fees for their programs, so be careful who you do business with.

While creditors have no obligation to agree to negotiate the amount a consumer owes, they have a legal responsibility to provide accurate information to the credit reporting agencies. That can result in a damaging entry on your credit report. And in certain situations, creditors may have the right to sue you to

recover the money you owe. In some instances, when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home. Finally, the Internal Revenue Service may consider any IRS debt relief or other forgiven debt to be taxable income.