Your phone is constantly ringing; everyone wants money that you just don’t have. They might as well be asking for $10,000 instead of the minimum payment of the $445 that you owe. You tell them you don’t have it but they don’t care and you are tapped out with friends and family. The bills are piling up, the calls are coming in and the collectors are getting ruder and nastier. Know your rights! http://www.bankrate.com/finance/credit-cards/debt-collectors-calling-know-your-rights.aspx
You want to pay everyone in full; you are not a flake, just in a bad season – but they certainly know how to push your buttons; they are masters at that. Who do you pay first? Is it the person who threatens the most or screams the loudest?
No, what you need is a plan. If you have an income coming in, but it is not enough at this time to cover all of your bills, then the following steps are the most important:
First, you have to eat; there are creative ways to eat on a strict budget - http://www.cooking-broke.com/. Second, pay your rent or mortgage to make sure you have shelter. Third, pay your utilities followed by transportation and then clothing. These five things are the basic life necessities, and by paying these first, you will have some relief knowing that you and your family are okay.
If you then have money left over then you can divide up the remaining monies equally with the creditors you owe and send them their fair share. It will never make them happy, and there the banks will tell you it doesn’t count, but it might be just enough to keep you from going to court until your situation changes.
If you have the money then pay your bills. You owe it and it needs to get paid. If you are struggling, then they can be paid with a strong budget, focus and a both a short term and long term plan in place..
Look for a financial coach in your area to walk along side you and guide you in this process. Sometimes it takes an outsider to show you that things aren’t as bad as they look, and maybe some peace and hope will once again be in your future.
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