How To Manage Personal Debt?

How can I manage my student-loan debt?

• I am currently drowning in over $20,000 of debt from at least four different banks. I cannot make the payments on these student loans. Every time I attempt to sit down and address the problem, I become overwhelmed and confused by how indirect all of the processes for even contacting these people are. Is there a resource for people like me? I honestly have no idea what to do, and no one to talk to about this problem. I have defaulted on a few of these loans already, I think three out of seven, and my credit is already shot. I would file for bankruptcy, but the hilarious thing is that I don't think I can afford to! Any help at all would be appreciated.

• Answer:

  Bankruptcy won't get you out of your student loans. You need to get yourself together, and contact each of the lenders. For the loans that are not in default, you may be able to either lower their monthly payments, or file for an economic hardship deferral. For those that are in default, you'll have to try to work out some sort of payment plan, if you can. It's normally possible to consolidate some or all of your loans, which would simplify the process. However, now that you've defaulted on some, I don't think you can do that.