Michelle Dunn, M.A.D. Collection Agency
If you try to use your MasterCard to pay off your Visa, need to
decide which bills to pay and which to let slide or have to much
month left at the end of the money, you may need some help getting
your finances in order.
Take a moment and list all the companies and people you owe money
to. Add it up exactly to find out how much you owe. When you know
how much you owe in total and to whom, add up the payments you have
to make this month. Then add up all the money you will make this
month, including salary interest on accounts, anything you can count
on receiving. Then subtract the amount of money you will need to pay
rent or make house payments and pay the electric bill or phone bill,
or for food, do you have enough money left to make all of your
payments this month?
If not, you will need to decide what to pay right way and then plan
how and when to pay the others.
The first step to take when you discover that you will not be able to
make a payment on time is to contact your creditor, or the person to
whom you owe the money, IMMEDIATELY! Explain to them your financial
situation and set up a payment plan you can afford. Your creditor is
more likely to understand and helpful if you contact them rather than
ignore them and become overdue without an explanation.
You can also try to come up with some extra money you might not have
considered, such as savings bonds, or stocks that can be sold. Maybe
have a garage sale or list large items in a local paper for sale.
Another way to discover money is to decrease your expenses, try
bringing your lunch to work rather than eating out.
Keep track of all the money you spend. You can write down everytime
you purchase something in a notebook, you will be surprised at how
much this can add up to! It also helps curb spending, since you will
think before you purchase, I will have to write this downahmmm do I
really need this? You will never ask again, "Where does it all go?"
If you do have an account placed for collection remember that debt
collectors are trained to solve payment problems. Be honest with the
collector about your inability to pay or not to pay and make a
payment plan and stick to it. Always communicate with the debt
collector. If you are not able to make a payment, call and let them
know.
If you try all of these ideas and still have problems, maybe you
should consider calling a non-profit Consumer Credit Counseling
Service.
About the Author:
Michelle Dunn is the author of "Starting Your Own Collection Agency"
and "MAD Collection Letters and Forms." She owns and operates MAD
Collection Agency. Visit her site ay www.madagency.com or her online
credit and collections community at www.credit-and-collections.com.