Folks,

I had an interesting talk with a neighbor yesterday at lunch. He had a friend in New Mexico who was so deeply in debt that she walked away from all of her obligations; credit cards, home mortgage, student loans...everything. Generally its not a good idea to renege on your debts - it will destroy your credit. So if you are in this situation and don't know where to get good honest help, here is what you might consider:

Contact the National Foundation for Credit Counseling. The NFCC is a network of nonprofit agencies with trained counselors who will help you assess your situation and lay out the most logical and realistic steps for you to follow. They are not miracle workers; you will have to pay off your debt. But the NFCC has been around for a while and has a good reputation.

Go to nfcc.org or call 800-388-2227.

For more about this, check out Liz Pullman Weston's piece on NFCC and credit counseling more generally.

Good luck,

James