Answering Yahoo

Occasionally I go to Yahoo! Answers to read the questions that various users submit, mostly with personal finance. Unfortunately, there are a lot of dumb questions and a lot more questions about working from home (which can be as equally dumb). However, every now and then you get a gem that I like to try to answer. The following is a question that I feel many people can relate to unfortunately.

I have a large debt to the irs, a garnishment on my wages and at least another 10,000 in other debt. I was just laid off of my second full time job, although I am looking for another………… what services or other options do I have to fix these issues. Between the garnishment, and the irs debt I cant make it on just one job.

Sadly, most people can be insensitive and quickly judge this person for all of the wrong reasons. Of course, getting a job or stop spending would be the easy answer. For a person in this situation, that’s not the full answer.

First, wage garnishment isn’t pretty. According to the government, garnishment is usually ordered by a court and cannot exceed 25% of a person’s disposable income (net income). My advice on this would be to talk with the IRS and see if a more agreeable settlement option can be made.

At least in the state of Ohio, where I live, they offer a program to settle debt if you face certain conditions. These conditions are economic hardship or doubt of collectability. It’s always worth a shot to try to explain things from your point of view.

As for finding someone to help you with your issues, you should contact the NFCC – The National Foundation for Credit Counseling. They can put you in touch with local companies that provide credit counseling services. They would be more experienced with such issues that you have and could offer you better and more personalized advice than I can.