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    If a good friend of yours has had serious financial misfortunes lately and is unable to meet her debt payments, what advice can you give? Be sure to include the topic of bankruptcy because she has heard that it eliminates all your credit problems. In your discussion, distinguish between straight bankruptcy and a wage earner plan.

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    STEP 1
    If there are debt problems:
    Your friend should first get to the root of the problem and see if personal repayments can solve the problem.
    If this is not feasible then Consumer Credit Counseling Service should be approached for assistance.
    If your friend is aged then he can approach Age Concern.
    A debt consolidation loan can be arranged for.
    There are several options to overcome financial difficulties.

    This material is taken from the website: http://findarticles.com/p/articles/mi_m1272" Budget. Workers commonly believe they will spend 20 to 30% less in retirement than they did while on the job. Yet, many retirees find they spend as much or more. They may incur heavy health care costs or may not have sufficient retirement income. (Four in 10 rely primarily on Social Security.) A budget can align expenses with income, and free up extra dollars to pay down money owed.
    Go easy on the credit cards. Seniors often pay for prescriptions and other medical expenses they cannot otherwise afford by credit card. At the least, ask your lending company for a lower interest rate, or transfer the balance to a credit card with a better rate. The best solution, though, is to stop using the card.
    Tap the equity in your home. Seniors typically have significant value built up in their home, and they can exploit it with a home equity loan or a line of credit (but watch out for predatory lenders charging high rates). In addition, you may be able to take a tax deduction for the interest you pay on the loans.
    Go in reverse. The downside of home equity loans is that you risk losing your house if you cannot pay back the loan. You can avoid this risk by borrowing against the value with a reverse mortgage, taken out in a lump sum, as a line ...

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    Debt is discussed in great detail in this solution.