Ten Simple Steps to Conquer Problem Debt

If youve identified a problem in the area of personal debt, youll need to set about remedying the situation. Here are easy steps to regaining financial control:

1) Seek help. If youre not sure how to proceed, or youre feeling too overwhelmed to act for yourself, call a non-profit credit counseling program for advice and assistance in working with your creditors to set up a repayment plan. Consumer Credit Counseling Service has offices throughout the US. Call 1-800-388-CCCS, 24 hours a day, for an office near you. You can also find information about debt problems from your local church, library or bank. Look for information on-line as well.

2) Contact your creditors. As soon as youre aware you wont be able to make a payment, contact your creditors. Creditors are more likely to work with you if theyre contacted before the payment is actually overdue. Debt collectors are trained to solve payment problems, so dont be afraid to be honest with them about your financial situation. Stay calm. If you commit to paying the bill by a certain date, be sure you follow through on that commitment. The creditor wont be likely to work with you again if you dont keep your payment promises. If you cant make your minimum monthly payments, write to each creditor individually and see if you can work out smaller regular monthly bills. Be sure to explain to them why you fell behind in your bills, your current income, your other financial obligations and the exact amount you can pay them each month.

3) Cut up all credit cards and send them back to the issuing companies immediately. Officially close all credit accounts. The temptation when you start seeing lower balances on your accounts could lead you to charge the credit limits right back up again if the accounts remain open. Dont take out anymore loans or open any new credit accounts until back bills are paid in full.

4) Set a frugal budget and live within it. Its usually easier to decrease spending than increase income. Dont make any purchases above and beyond the absolute basics until youve made some headway in catching up on your back bills. Consider selling assets to find more money for your debt repayment. Even just holding a large garage sale can sometimes generate enough money to help pay an immediate bill or two.

5) Prioritize debts. Mortgages, child support and any debt that has gone to a collection agency is a priority. After youve identified the first priority debts, look for the credit companies that are charging you the most interest.

6) Pay each creditor something. No matter how small the amount youre able to pay, it will show good faith on your part as you try to negotiate payment arrangements.

7) Track personal spending. Its important to identify any holes where your money is draining out. Keep a detailed record for one month of every expenditure, no matter how insignificant. Little expenses on a regular basis add up quickly. Carry a small notebook with you and write down every single purchase. Now youll know where your moneys going.

8) Plug up any holes discovered from the spending record.

9) Plan ahead for annual expenses (i.e.: insurance, car licenses, medical deductibles, etc.).

10) Set long term financial goals. After setting concrete, definite goals for future financial health, make all current financial decisions with your future well-being in mind. Keep the end result in mind debt-free living!

Portions of this article were excerpted and adapted from A Simple Choice: A Practical Guide to Saving Your Time, Money and Sanity, by Deborah Taylor-Hough (Champion Press, 2000). Used with permission

Deborah Taylor-Hough (free-lance writer and mother of three) is the author of several popular books including Frugal Living For Dummies(r) and Frozen Assets: How to Cook for a Day and Eat for a Month. To subscribe to her free email newsletter, Simple Times, send an email to: subscribe-simple-times@hub.thedollarstretcher.com Visit Debi online and read more articles dealing with simple living, frugality, parenting and much more: http://thesimplemom.wordpress.com/

Rosanne Bittner
Michael Crooks
Rogers Jewelry Store
Magna V45
Custom Soccer Uniform Manufacturer
Dog Bed For Cat And Dog
Deck Gate
1 Year Wedding Anniversary Gift
Detox Diet Marthas Vineyard
Funny Softball T Shirt
Muscular Men Photos
Myspace Pic Tweaks
Fergus Falls Medical Group
2003 Prediction Psychic
Tony Backhurst
Ariel Sea Under
Best Mobile Phone Plan Prepaid
Maxtor Diamondmax Plus 9 Review
Midi Karaoke Lyric
Lawyer Mesothelioma Pleural Washington
Transfer Ipod Music
Tennis Jobs
Dating In New Speed York
Elderly Exercise Videos
Majorca Holiday Villa
Reverse Phone Number Directory
All I Want For Xmas Is You
007 Movies
Favorite Hiking Trail Utahs
Boss Day Gift Idea
Atlantic Regional Credit Union
00 Buckshot
Earth Quake Sf Bay Area
Party
Dish Network Satellite Tv System
Residential Heat Pumps
Friend Fur Real Tiger
Breast Cancer Xmas Cards
Play Station 2 Pal System
1 Year T Bill
Cheap Flight To Philadelphia
Angeles California Directory Los Phone
Golf Discount
Battle Earth Middle Trainer
How To Get Free Sprint Ringtone
100 Century Family Farm Farm Heartwarming Memory Tale Tractor Tractor Vintage Years
Gas Tank Decal
Lose Treadmill Weight Workout
001 001 Cheap Flight Keyword Miva R Ticket
Us Postoffice
21 Day Detox Health Natural Optimal Plan Rejuvenate
1 64 Farm Hobby Toy
Boston Cosmetic Eye Surgery
Apartment Rental South Of Boston
Online Degrees Graduate School
10 Year Wedding Anniversary Gift Idea
07 Cricket Ea Sports
Hunter Air Purifier Filters
Atlantis Bahamas Package Vacation
Boot Hiking Limmer
Group Net
Parc Corniche Condo Suite Hotel
5200 Balance Bike Exercise New
Computer Industry Almanac
Card Football Guide Price Trading
1 Drug Online Store
Healthcare Financial Statements
Why Become A Vegetarian
Animal Fur Pet Real
Union Bank Of California Jobs
007 Nightfire Xbox
Find Telephone Numbers
Hub Chrysler
Dish Network T
Vending Guide And Directory
Cheap Family Holiday Insurance Travel
Mattress Natural Novaform Topper
10 2007 California Obituary
Bj 39 S Wholesale
Real Estate In Georgetown Texas
360 Xbox Case X
Unlock Software Nec
Accident Extreme Sports
Bill Of Right Political Cartoon
Airfare Cheap Cheap Dirt Discount Discounted Flight Flight Fly Hakodate Japan Ticket Travel
0 Balance Transfer
10 Stock Dividend
Pet Supply Toy
Crude Oil Price Trend
Oil Gas Mixture Chart
Plenty Up Top
Airline Airline Cheap Find Flight Flight Flight Hotel Hotel Ticket United
Lil Wayne Weezy Baby
Dance Floor Lighting
News In Africa
Discount Hotel Rate Atlantic City
Chinese Symbols Meanings
Ff
0 Rings
Fur Elise Midi
Discount Cosmetic Contact Lens
Archive Chicago Obituary Tribune
Ca Diego Hotel San Suite
By Campbell Company Construction Doug Ontario Owned
2007 Camry Le Picture Toyota
Good Faith Estimate Form
20 20 Video Store
Cash Loan Bad Credit Uk
Apartment Chicago Il Rental Ridge
04 Beach California Rental Vacation
Australia Cheap Flight From Usa