Every day we find ourselves struggling more and more to survive. The economy doesn’t seem to be getting any better.
We still here about unemployment rates going up, foreclosures, layoffs and companies going bankrupt or going out of business.
Many families have gone from two incomes to one and in some cases to none. They have slowly depleted their savings accounts, maxed out their credit cards and borrowed against their 401k account.
It’s so bad we don’t want to answer our phones; we know it’s someone trying to find out when you will pay off your debt. It’s not that you don’t want to settle with them is that they are asking you for something you just don’t have. Sure, they say to make payment arrangements but the payment amounts they want are extremely hard. Right now, many only make enough to buy food and pay for bills such as utilities, car insurance, rent, etc.
When we speak to the creditors, they make us feel as though we set out to do this on purpose. As far as they are concerned, we planned this from the very beginning and never had any intention to make good on our debts. This is not the case. The majority of us have worked hard all our lives, saved money and paid our bills on time. Not once did we ever think this could happen to us. During these hard times, we now remember those we talked about when they lost everything or found themselves in a serious financial crisis. We may have called them irresponsible or dead beats, now we know different.
If you find that you are in this situation, there is still time to save yourself from completely losing everything. For those with homes you can avoid foreclosure by trying to ask for a loan modification or refinancing. Of course, you have to be very careful when doing this. Some companies will take advantage of those that are going through hard times. Make sure to read the fine print and always check to make sure they are a reputable company. Sit down and check your credit cards. Try to avoid using them so much, only use them in emergencies. Try to add at least $20.00 to the minimum payment and pay off the cards. Don’t purchase items that aren’t necessary. Right now is not the time to go crazy and purchase big ticket items just because we can. We have to pay this back and we aren’t completely sure we will have a job six months down the road. Try to avoid using your savings or getting loans or your 401k. Of course, if there are no other options, do it.
We all need transportation to get back and forth to work. If you have more than one car, use the one that wastes the least amount of gas since prices go down a little but rise quickly and stay there longer. Avoid purchasing a new car just because the dealerships are willing to give you the deal of a lifetime. They are doing this because they need money too. A good way to consolidate your bills is to get a home equity loan. Take that money and pay off as much debt as you can but when you do this, make sure your payments won’t be sky high. Also, once you pay off your credit cards, don’t use them. Remember the idea was to pay them off and have less debt.
Many of us don’t own a home and live in apartments. Here is a tidbit you may have not been aware of. A lot of these apartment complexes are half full. They have many empty apartments and are concerned their tenants will leave since many can’t pay. Before bailing out of a lease because you can’t pay or waiting for that dreaded eviction letter, talk to them. Many are offering their tenants to pay their rents bi-monthly or weekly. They are aware that many are struggling, you are not alone. They might be willing to give you time to pay because they need you to stay.
Since things are so bad, we tend to panic. Of course no one can blame us with everything that is going on. When we get paid let’s say Friday morning before the money is even in the account, it’s already spent on bills. However, no matter how frustrating the situation we will survive somehow. Before doing something drastic as many have done out of despair, think twice. Look for help, it’s out there. Turn to friends and families for support. You will find out they too are going through hard times. Some families to survive have moved in together for a while until they save enough to get back on their feet. It is difficult right now but things will get better. As a last resort, file for bankruptcy, it’s nothing to be ashamed of. It has to be done at times just to get rid of the creditors that are constantly calling and writing to you for payment. This can at least give you some peace of mind and in time you will be able to get back all you lost.