Call each creditor up and get on a repayment program.  Get them to freeze all the late charges and interest.  If they refuse then you can get backup by calling a legitimate debt settlement company.  You don’t have to go into great detail with them but you should at least make the effort to repay.  If you just don’t want to deal with them then you have options like Consumer Credit Counseling or Debt Settlement.  I wouldn’t make either of those options my first choice before trying to negotiate myself, both have their drawbacks.  Try it on your own first and then if you’re just frustrated beyond belief then get hold of a company you can trust.  I hesitate to make recommendations as to who you can trust.  I’ve had some good experience in recommendations and some bad.  If you read this post and see an advertiser on this site then rest assured they are at least screened by me although I make no representation as to the quality their service, it doesn’t constitute a warranty, don’t sue me, etc.  (how’s that for legal mumbo jumbo?)

Oh, by the way…I’ll be putting together some more posts soon so bookmark me and check back every so often.  I know it’s been a while but Summer’s over and I’m back at my desk for large chunks of the day.

Take care,

David

PS – Don’t stress over debt.  Life is too short.  Manage your debt, learn to budget, live happier.

Nope, not even a little bit.  I never thought of debt until it was too late. The fact is that none of did and most of us weren’t taught how to manage our credit and debt.

Most of us are up to our necks in credit card debt.  We gladly go along unabashed because it is, simply stated, “socially acceptable” to owe money to a giant corporation with whom we have absolutely no personal connection.

What is socially acceptable today would give our grandparents sleepless nights.  My grandfather once told me that I shouldn’t buy it if I can’t afford it.  Well, that apparently does not apply when I can afford it on a credit card.  I am fairly certain that at the time I missed what he was telling me.

Possibly something to take away from all this is that regardless of the credit card, we are using somebody else’s money and we should try not to do that.

In addition, until we face real financial adversity we might not find the strength to change.  Unfortunately by the time you get to this point debt has become uncontrollable and ultimately unjustified.

Ok, so now we’re up the waterway without mean to row the boat, (something about a creek and a paddle).  What do we do?

1. We take a deep breath or several.
2. We figure out how much our monthly shortfall is.
3. We figure out a way to increase our income or decrease our monthly expenditures.

If we can be successful in those three steps then we’re good.  Problem solving in progress and lesson learned.

But, if we still have a shortfall after that then we’ve got issues; and here’s how we fix them:

1. Prioritize your debt.
2. Contact the creditors that are not going to get paid and work out a plan.  Let them know what to expect and when.

Ok, so step number 2 is the hardest but you can’t cave in.  They are going to demand payment and if you’re already late they’re going to get crazy about it.  You can’t give into the impulse to pay them right away.  Remember, you are in a bind and XYZ company is not going to get their money if I have to choose between my rent or my credit card.

I just want you to be prepared.  It’s not going to be pretty in most cases.  Stick to your guns and you’ll get through this.

Next is to follow the Debt Snowball Method explained in another post.

If you have any questions, please post a comment and I’ll get back to you as soon as possible.

Wishing you peace of mind,

David