No one wants to admit that their finances are out of control. We have all experienced more money going out than coming in.
In January of 1998, I quite my full-time job so that I could finish my college degree by August 1998. I had student loans and I knew that I was going to be working at least 20 hours a week for my internship during the summer, so I was not worried. I had everything planned.
By June I was in trouble. My savings were gone, I did not qualify for any more student loans, and my son was in private school. I started living on my credit cards. I had excellent credit, so I had $1000s in my line of credit on seven different cards.
By August, I was switching debt from one card to another, scared that if I missed a payment all the credit cards would start charging the regular rate and not the special offer rate that I always seem to find. I wanted to attend a credit counseling session, but I had just started a new job in Austin.
In the evenings, I would search the Internet for alternatives to bankruptcy. I followed the steps suggested, like calling my creditors and making a budget, but I could not consolidate my debt because I had just started a new job, and I certainly did not want to borrow any money from my family.
Lucky for me, an uncle died and left me a small inheritance. It was enough to repair my finances for a few years. I was lucky. Do not count on luck when it comes to finances.