Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?
You're not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or over spending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn't have to go from bad to worse.
If you or someone you know is in financial hot water, consider these options: realistic budgeting, Consolidation counseling from a reputable organization, debt consolidation, debt settlement, or bankruptcy. Debt negotiation is yet another option. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future.
Self-Help
Developing a Budget: The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Start by listing your income from all sources. Then, list your "fixed" expenses (those that are the same each month) like mortgage payments or rent, car payments, and insurance premiums.
Next, list the expenses that vary; like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.
Our website or you may call us at 1-888-502-3907 for information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your checkbook, and creating plans to save money and pay down your debt.
Contacting Your Creditors: Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you.
Dealing with Debt Collectors: The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.
Consolidation counseling: If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a consolidation counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems.
But be aware that, just because an organization says its "nonprofit", there's no guarantee that its services are free, affordable, or even legitimate. In fact, some consolidation counseling organizations charge high fees, which may be hidden, or urge consumers to make "voluntary" contributions that can cause more debt.
Most consolidation counseling agencies offer services through local offices, the Internet, or on the telephone. If you owe over $20,000 and need to reduce your monthly payments debt settlement is a viable option.
Our consolidation counseling is free and is available to consumers.
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