Quote:
Originally posted by daoist
It seems that I'm an expert at financial calamities:
I've got a couple of credit cards maxed out, i run on a low - to - negative bank account balance, and i've got tons of other bills piling up.
Every couple of weeks whenever I think i can pay some of my debt down (most of my debt is in collections now) something new happens.
I've gone to the hospital from heart-attack symptoms (i'm a 23 year old college student...no insurance), i've had creditors try direct debits from my checking accounts at exactly the wrong times (case in point: my checking account is $-380 right now due to a direct debit). My car broke down and I had to pay about $500 to fix it, then the next day I got pulled over 200 miles from home and had my car impounded. due to my inability to get a ride to go pick it up it sat there for about a month racking up "storage fees", after it's all said and done i'll be out $800 or so on that little adventure. Oh, and since I didn't have a car for a month I lost one of my jobs...the higher paying one 
anyhow, i'd estimate I've got about $10k of debt going on right now (not even counting my student loans)
what the hell should I do? I've seriously considered faking my own death. Seriously.
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Ouch... I guess it is true when they say it rains, it pours.
Well, you do have several options. You didn't say how much you make, but I know that it is a terrible, terrible place to be in.
Your first option would probably to call the collection companies and see how low they will settle. Because they buy the debt at a discounted price, they are generally willing to settle for a good deal less than what you actually owe them.
Your second option would be to contact a debt-consolidation company. They generally will try to settle with the collection companies for you, speak with any creditors that you have to have late fees reversed and lower the interest rates, and you'll generally only have to make one payment per month for all of your debt.
Finally, your third option is to consider bankruptcy. Wipe out all your debt, (at the cost of your credit score) chalk it up to a learning experience,
learn your lesson and start anew. Take note of what put you in that position in the first place, and don't make the same mistakes again. Your credit history is probably already not too great, seeing as how most of your debt is in collection accounts, and this will give you a fresh start.
I hope this helps, and if you have any more questions, feel free to post or to PM me. Keep me updated!