Your bills are piling up on the kitchen table. The phone is ringing. Your are getting not so nice letters in the mail. You rather just avoid everyone, because everyone is going to ask when you can pay and you have no idea. You don't know who to pay first. You'll find that the way to handle a crisis like this, is just like any other in life. Just handle it. For example...
DO NOT avoid speaking with your creditors. DO initiate contact with creditors and let them know of your financial situation. Especially companies that tend to report to credit agencies the fastest. Your mortgage, car payment, credit cards. Explain to them your financial situation and ask for reduced payments. They may be able to stretch the bulk of the debt over a course of several months. If you do not reach out, they will continue to harass you and then pass you to a collection agency for even more harassment!
DO NOT give up without exhausting all your options. DO think about all your options for making payments before giving up. Consider contacting a credit counseling agency (preferably non-profit) that can arrange a debt consolidation arrangement with your creditors. The consolidation is noted on your credit report, but it is better then going into default with all of your creditors individually.
DO NOT hang up on a creditor with a nasty attitude. DO try to negotiate with the collection agency for a manageable payoff amount of the debt. Agencies rather get some of the money, then having to take you to civil court for all of it.
DO NOT ignore letters stating that you are needed to respond to a civil court regarding your debt. DO respond to these letters or the creditor can ask for a default judgment against you and garnish your wages or bank account. If you have ignored these letters, then go to the court and ask for a new court date based on a good excuse for not responding (illness, out of town, etc.)
Lisa Angelettie M.S.W. is a psychotherapist & the Director of GirlShrink.com. This content was written by Lisa Angelettie & if you would wish to use it in any manner please get permission by CLICKING HERE.
