Your Lenders

• If debt is at the root of your financial troubles, your lenders should be among the first sources for financial help. You can contact your lenders directly to explain your situation and ask for a reduced payment plan. Your mortgage lender may be able to modify your loan, reduce your interest rate or help you find a refinancing opportunity that will avoid foreclosure and get your monthly payments down to an affordable level. Other loans, such as student loans, can offer you a forbearance, which is a temporary stoppage of payments while you recover.
  
  

The Government

• Federal and state government agencies can also provide financial help. The Medicare and Medicaid programs offer free and low-cost medical insurance for elderly Americans on fixed incomes and low-income families, respectively. Tax credits, including the earned income credit, apply to low-income workers who may end up owing less on taxes. Unemployment and disability insurance help workers meet their financial obligations until they can get work again. Finally, food stamps help families keep nutritious food in their homes so they can devote their limited financial resources elsewhere.
  
  

Credit Counseling Agencies

• The major credit card companies fund non-profit credit counseling agencies that can help consumers deal with financial problems that arise from credit card debt. The purpose of a credit counseling agency is to negotiate between the credit card company and the indebted account holder. By examining your financial circumstances, including income and savings, a credit counseling agency can work to get your credit card payments reduced to an affordable level. This will help safeguard your credit score and keep your finances flexible for paying essential bills.
  
  

The Courts

• As a measure of last resort, federal courts allow individuals with major financial troubles to file motions for bankruptcy. Filing for bankruptcy will damage your credit history and may make it impossible for you to borrow money for a period of time, but it can also wipe out unsecured debt and give you a fresh start. Bankruptcy courts allow individuals to file for Chapter 7 bankruptcy, which is total bankruptcy, or the more mild Chapter 13, which allows the court to reorganize debts to make them easier to pay off.