Folks, things are getting tight out there.I don't know about you, but I may need a new engine in my car. Are you prepared for such an emergency, or will you be reaching for the credit card?
Perhaps you're walking around in "denial" (and you have never been to Egypt). It's a joke, but debt is no laughing matter. Lets take a look at: WARNING SIGNS OF DEBT OVERLOAD
* Using credit cards to pay other credit card debt
* Skipping Payments because you can't afford them
* Constantly switching cards to get a lower interest rate on a new card
* Arguing with your partner about the bills
* Loosing sleep or constantly stressing out about your debt
* Using your credit card to make everyday purchases like gas
* Not knowing how much debt you owe
* Getting calls from creditors
If even one of these sounds like you ... here are three things you can do!1) Pay cash for everything!!! When the money runs out... game over (until your next check).
2) Don't run, contact your debtors. They've got all yo' info, so where can you go? Call each of them and say something like, "I'm in a difficult situation right now and I can only pay $35.00 right now . I know that $35.00 is not a lot, but it shows my commitment to paying this debt. I will call you in 4 weeks on September 13 and either make the same payment or more."
Now once you have said all this (and they will probably bump you up to $50.00 a month), YOU MUST CALL THEM BACK WHEN YOU SAID YOU WOULD!
No exceptions, even if you do not have the $35 or $50 dollars. So get a calendar. If you don't call on the exact day your credibility is shot and then they get nasty. Repeat the above process every month until you get straight.
3) Combine your credit card debt. It is better to make one payment than four. If your card companies have not sent you consolidation checks in the mail, find out which card has the most space to put all the others balances on. Ask what interest rate they are giving for consolidation/debt transfer requests. Go with the card that gives the best rate and has the most space for the other cards.You can consolidate over the phone, but you never know when their paper work will go through. It is better to have that consolidation checks mailed to your house and you mail them out like an "on time" payment to the other card companies. Your debt may be so high that you have to consolidate from eight cards to two. What is important, is that this process is only worth your time if the new rate they offer is guaranteed for at least a year.
Stay tuned next Saturday when we will hit three more moves you can make.