Sometimes when you’re struggling to pay the bills and feeling overwhelmed, it helps to know that you’re not alone in that predicament.

For your enjoyment, here’s Ray Charles singing a classic about being broke … empty pockets … no money.

For years, owning a home was “the American dream” — until the recent housing crisis turned owning a home into a nightmare for millions.

Don’t miss watching a video at the end of this article that was produced by ABC News on the subject of homeowners walking away from underwater mortgages.

Mortgage defaults are up 15 percent since last year and an astonishing one in 409 homes received a foreclosure notice this January. That’s 315,716 homes! And at least one in five homeowners owe more on their homes than their homes are worth.

In some states the figures are particularly staggering. In Nevada alone more than 40% of homes are “underwater,” meaning homeowners owe more on their homes than what their homes are worth.

Many homeowners on the edge are wondering whether they should just walk away from their mortgages and get off the “hamster wheel” of making costly payments on a home deep underwater. It’s usually the emotions of fear and shame that keeps so many Americans in homes that are no longer good investments but have turned into albatrosses.

Compared to homeowners, banks and corporations have no such emotional qualms. Banks and corporations have been walking away from underwater mortgages for years. If an investment in a property isn’t working out, they routinely walk away. It’s strictly a business decision. No fear. No shame.

Banks and corporations understand that contracts are legal documents, not moral documents. And that the penalty for walking away from the mortgage, or breaching the contract, has already been considered and in fact is made a part of the contract.

But individuals generally don’t understand this basic rule of contract law and they become stuck on the belief that they have a moral obligation to pay their mortgage.

Even the Mortgage Bankers Association, long a critic of individual homeowners walking away from their mortgages, announced recently it was defaulting on its headquarters, a Washington, D.C., building it opted to sell in a short sale when it fell underwater.

If you find yourself seriously thinking about walking away from your home mortgage, make sure and consult with an attorney who is familiar with your state laws, and ideally has previous experience in assisting with strategic mortgage defaults.

Earlier this week, I wrote a post on the increasing phenomenon of homeowners who can afford to make their mortgage payments but instead are walking away from their house because it has depreciated in value to the point where they owe far more than the house is worth.

More and more homeowners are deciding that it would be folly to continue to make the mortgage payments when they find themselves with a house that is financially underwater.

Here’s a recent video story from 60 Minutes on this very issue.

Source: CBS News

A watchdog panel overseeing the financial bailouts says the Obama administration’s flagship mortgage aid program, the Home Affordable Mortgage Program (HAMP), lags well behind the foreclosure crisis and leaves too many families out.

The Congressional Oversight Panel says in a report released Wednesday that the administration projects only one million families will end up with lower monthly payments as a result of the program. The report says six million families are more than two months behind with their payments, and 200,000 more families receive foreclosure notices each month.

A year and a half after launching the program, “Treasury is still fighting to get its foreclosure programs off the ground,” Elizabeth Warren, who heads the independent panel set up by Congress, told reporters Tuesday.

Warren warned that borrowers who have their monthly payments lowered as a result of the program still could lose their homes because the payments remain high and many Americans are facing new financial strains.

“Redefault signals the single worst form of failure” by the Treasury Department, said Warren, who is a professor at Harvard Law School. “Billions of taxpayer dollars will be spent and families will nonetheless lose their homes.”

Source: ABCNews.com

Below is a video that I want you to watch but first let me say this:

Every day I speak with a lot of good people just like you who are struggling with debts that they are unable to pay. These people have done the best that they can but they keep falling further and further behind and the future looks bleak. Sound familiar?

• 1 in 5 Americans is currently unemployed or underemployed.
• 1 in 9 families can’t make the minimum payments on their credit cards.
• 1 in 8 mortgages is in default or foreclosure.
• 1 in 8 Americans is receiving food stamps.

Many of these people are seriously thinking about filing bankruptcy yet they have the feeling that filing bankruptcy would be the easy way out. Some feel ashamed. Some feel guilty.

These feelings of guilt and shame are misplaced. Put your emotions aside and make a business decision based on the numbers. You’ve done your best. Hold your head up and do what you need to do to assure your family’s economic survival.

Don’t worry about your creditors because they certainly aren’t worried about you. In today’s cut-throat economic climate, the banks, credit unions, finance companies and credit card companies aren’t your friends. The truth of the matter is that they routinely take advantage of you and every other American consumer.

Consider filing bankruptcy and leaving your debt behind. Learn from your mistakes and get a fresh start.

If you’re struggling with too much debt and have questions about bankruptcy, contact me today to schedule a FREE initial telephone consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. Or just give me a call at 918-615-8260. I’ll answer all of your questions in plain English so that you can make a wise decision regarding what would be best for your personal situation.

Source: www.bankruptisthenewblack.com

Yesterday I wrote concerning the high-growth industry of prepaid debit cards and I warned of their hidden fees.

Here is an informative video on prepaid debit cards produced by the New York Times and PBS Frontline.

When money was tight, Diane McLeod found that she couldn’t pay her bills. So she turned to one of the quickest yet costliest sources of cash – her credit cards.

Now she’s paying a heavy price.

Through it all, however, Diane says that she has learned much. She now understands that for many people, her included, credit cards are just “too easy” and “too dangerous.”

To finish this week’s series on the dangerous combination of college students and credit cards, here are 2 videos.

The first is a humorous look at a college freshman’s experience with her new credit card.

The second is a serious look at a college graduate sharing how her unwise use of credit cards in college is having negative effects on her lifestyle today.

Several months ago I became acquainted with Steve Rhode through Twitter. Steve is the founder of GetOutOfDebt.org.

Through his GetOutOfDebt.org site, Steve answers questions submitted by people who are having money troubles. Steve’s goal is to give people a free and anonymous place to get direct and honest advice about how to best cope with consumer debt problems.

Steve has a special insight into offering advice to people who are stressed out over mounting debt. Steve is like me in that we both can relate well to regular folks who are struggling just to keep their head above water financially. That’s because both Steve and I have been there. We’ve experienced the pain, the fear, the guilt, the shame and every other negative feeling that comes with unmanageable debt. And we both have personally filed bankruptcy and lived to fight another day.

In the following video, Steve and his wife Pam share their personal bankruptcy experience.

But before you watch the video, let me address a few experiences that Steve & Pam endured that should never have happened. And I can guarantee you that if you need to file bankruptcy, and you hire me to be your bankruptcy lawyer, you will never experience these things.

First, Steve & Pam’s bankruptcy lawyer apparently spent so little time with them early in their case, that she didn’t even recognize them at court. That will never happen if you are my client because m clients and I spend a lot of time in contact with one another, by phone, email and in-person.

Second, Steve & Pam’s bankruptcy lawyer apparently let their creditors take charge of the court hearing and berate Steve & Pam. That has not and never will happen to my clients. That behavior is totally inappropriate for a 341 meeting, and if the trustee doesn’t put an end to it immediately, I will.

Lastly, Steve & Pam’s bankruptcy lawyer apparently just cut and ran after the court hearing was over, leaving Steve & Pam to fend for themselves. After my clients’ court hearings, I take the time to sit with them and review what happened, answer any questions or concerns they may have, and advise them on exactly what will happen from then until their case is finished and closed.

If you’re struggling with debt problems and would like to know more about how bankruptcy may be able to help you, contact Dan Nunley today by completing the “Contact Dan” form on the right side of this page. I’ll get back in touch with you as soon as I can to schedule a FREE initial telephone consultation. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.

My friend and fellow bankruptcy lawyer David Shaev of New York City was recently featured in this video debunking the following five popular myths about bankruptcy:

1. You have to be dead broke to file bankruptcy.
2. Bankruptcy ruins your credit score.
3. You’ll lose your home if you file bankruptcy.
4. You should max out your credit cards before filing bankruptcy.
5. You should deplete your retirement savings before filing bankruptcy.