Anyone been in a bad financial situation? I am stressed and can’t sleep. Need some tips or encouraging words to help me through this.?

First off - you have not failed your family - sounds to me like you are really trying to turn this around. This is how we LEARN - by making mistakes and changing what we are doing.. enrolling in a debt settlement program - that is a great step forward - so, no, you haven't failed your family.. Plus - you've set a goal to be debt free in 2 years - setting goals is a positive step that keeps you looking forward (and not at past mistakes) this is positive, gives you hope - keep focusing on your goals!

A big problem here is not your finances, but your stress over finances - stress damages your health (and as you say, you are having trouble sleeping) - stress is bad on the heart.. so the first thing I would suggest is to find some healthy coping skills for dealing with stress - don't think too far down the road - take one day at a time and do the best you can. Get lots of exercise and fresh air - get out in nature and do some deep breathing exercises.. all of these are healthy stress busters.. If you can't get out for a walk, then do some jumping jacks, stand outside and listen to the birds, look at the stars, watch the wind blow through the trees - I am not just picking random things here :-) These things - bird song, trees etc.. have a instinctual calming effect on the brain.. same with deep breathing (10 slow deep breaths in and out through the nose - signals 'safety' to the brain)..

I know about living on a tight budget - my husband and I wanted to retire by 50 years old, so I saw a financial advisor and he told us to start living on 60% of our income.. I was shocked and outright told him it couldn't be done.. he said that this was our choice.. in the end, we decided we would do it somehow.. and for 10 years we did, and were able to retire when we wanted to..

What was key for us was getting that money out of sight - it was taken off the top of our pay, so we never saw it, never even thought about it.. it was gone and we had what we had..

When you don't eat at restaurants you save a TON of money! But also you can cut some cost in groceries - build your meals around cheaper foods - potatoes, brown rice, cabbage, beans, soup, eggs.. these are cheap, but also HEALTHY! you still get meat but it is in smaller quantities.. think chicken noodle soup, cabbage rolls, baked beans, omelets, make your own salad dressings (super easy, healthier and much cheaper).. Eating this way will become habit, if you stick with it..

Same goes with other things - form new habits for entertainment, another area you can control - getting free movies and books from the library, going to free events, playing board games, taking long walks etc..

What about electricity? Where I live, power is cheaper after 7pm and on weekends - I use this to the fullest advantage possible.. I do almost all my cooking on the weekend, and just reheat during the week.(for example, I cook 8 cups of rice on Saturday, package it for during he week - same goes with soup, ground beef, chicken..) I do all the laundry and run the dishwasher after 7pm.. my electricity bill is a lot lower when I do this and it is something I can control.. Same goes with heat - turn it down when you are out or sleeping.. wear sweaters more :-)

You will find as you develop cheaper habits, it all gets easier..so focus on developing those habits. Lastly, being a Christian - I gotta say this - When we pray and ask for help, God does help.. I've seen this so many times.. and we are told to give back a portion of our income to God's work (church, Christian charities) and if we do, God WILL bless our efforts.. Proverbs 3 - Honor the Lord with your wealth, with the firstfruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine." This is a PROMISE from God.. or as someone once said "I can do more with 90% of my income, with God, than I can with 100% without God".. in my life, this has been the truth - I've heard lots of people say they can't afford to give to a church or charity that helps others.. and those people are still poor.. in all the years I've given to others, never once have we really struggled with money - not even when we had ZERO income for 7 weeks.. it was a scary time, but we managed to stay out of debt.. hope this helps

Buy a book by Dave Ramsey and live by it. He is an expert in personal money management

Buy food in bulk, lots of dried beans, go easy on Christmas presents and budget carefully. Most places won't settle a debt for less than what you owe. At most, they might agree to take off half or all of the interest if you pay it off in full but, not over 2 years. If they sue you, they will get all they are owed and more - interest, late fees, penalties so, good luck. You will need it. I realize that my encouraging words were few but, you need reality, not fantasy. Oh - make do with used cars. Sell what you don't need.

there are legit debt counselors that you may want to write or speak with................try the site - www.nolo.com

Seems to me you have already learned from your past spending habit. Rather than being scared, you should be proud of yourself for getting a handle on your financial status. Put your credit cards in the freezer and only use them in emergencies.