Credit Rating Trouble

Dear Positive Way Money Consultants, hello, Thank you. I sincerely need your help.
     I worked for (Major Company) 2000-2005 making a very nice salary ($70k/yr), benefits; 401k.  My credit was exceptional. I always paid early on everything. I was let go late 05.  At this point, I decided I would elevate my life from this.  I researched every "business opportunity" under the sun and finally found one that I felt (and still) was fool-proof (name and website removed).  I used my great credit to take out $20k.  My 401k and my savings account and 4 months of unemployment would be enough to start up my new business and pay my bills ($2,400/month).
     Well, I've made $0 so far. Since then I've moved back with mom and have gotten a night job just to try to pay my bills and keep my credit intact ($1,500/month, including 5 credit cards, 2 $10k loans and a car loan).
     Well, now I'm almost suicidal as I watch it all slip away.  My CC's are almost always a week or two late, not enough to alert the bureaus, but every card is lowered or closed.   Three months ago was the first time I have EVER been late on a car payment. Now I routinely pay about 70% on the due date.
     The $20k loans that were given to me on the strength of my credit score alone are in the worse shape. One has been closed. The other, although current, is always 2 weeks late.
     I have not given up on my business but it will be months before profit is seen, so I have 2 interviews in SC doing telephone work. If hired, I may be able to crawl back, BUT:  I am watching my credit, which I was so proud of, crumble before my eyes.  As I write this 50% of my accounts are between 1-3 weeks overdue.  It brings tears to my eyes because that is not me!
My questions:  1) What would you do if you were me?  2) Can I save My Credit?

Thank you from the bottom of my heart, if you muster up a response.  Signed: Schirall, male, age early 30’s.

Dear Schirall, first of all let me say that you are to be highly commended for your commitment to being a good and honest debtor (that’s what your credit rating is really all about in the end).  You obviously consider your financial responsibilities to be of great importance.  This probably extends to the rest of your life as well.  Understanding that you are a responsible person, please consider the following to address your questions:

1. Talk to family and a counselor to address your remorse about the situation.  If you truly feel suicidal about this, you must act immediately to get professional help to assist you in getting through this.  Depression is not an uncommon response to difficulties such as this and you must take prompt action to get help.  You will need to feel better to do the best possible job you can to fix your credit.  Of all these suggestions, this is the most important.
2. Understand that even if your credit score goes down for a while, you can, with discipline and hard work, restore it.  You know how to do that.
3. Recognize that you are far more than a credit score.  Consider this trial to be a learning experience and apply your talents toward getting as much out of all of this as you can.  Your mind-set is key.  Be a student rather than a victim.
4. Sit down with your budget and bills again.  Now, where can you cut back?  Can you sell your car and buy a much cheaper one for cash?  You should see everything as a fair target for cutting back.  What of that $900 per month expense can you reduce?  Here are 36 money saving ideas.
5. Continue to be aggressive with your job search.  Take on a good full-time job, and/or more part-time jobs.  Put your business on hold or make it part time at best until you can get caught up and develop a positive cash-flow.  Here are 14 ways to make more money.  You could even be delivering newspapers early in the morning to make up your cash shortfall.
6. Work with your credit card companies and lenders.  See if you can negotiate different payment plans, lower interest rates, waived fees, etc. to create a plan that you can stick with and they can tolerate that is lower than the current $1,500 per month.  The last thing you want is to go into collection.  Lenders love honest, sincere communication.
7. As to your business, you may be learning that there is no “sure-thing.”  Often the only consistent winners in “fool-proof” business plans are those who promote them and a very, very few of the lucky.  The hard part really starts once the adrenaline and enthusiasm of the cheerleaders wears off and reality sets in.  Starting any business is tough and the majority don’t last beyond four years.  For the details of what to do with your business, beyond putting it on hold or making it part-time, please go to this link.
8. It really sounds like you are not afraid to work so take this on as one of your jobs and work it like one with objectives, plans, milestones, and actions.  Make a plan and keep it up to date.  Here are our seven steps to cutting debt.
9. Read and follow the suggestions in the powerful business profitability book - Instant Profits: Making Your Business Pay

The good news is that you are young enough and smart enough to make this work even if you get bruised a little.  Take the opportunity to objectively reassess your future and take stock of your business.  Get an objective review of your business plan and develop a life plan to move forward with your new knowledge.  Good luck.  We wish you the best.

Please remember that you have free will and the suggestions provided here are only for consideration.  Consult with legal and licensed professionals as appropriate and make your own decisions.