Blog: Life Management
If the pressure is already beginning to build regarding your spending for the Christmas season you may need to get on the phone to your creditor and explain your difficulties, emphasizing that you really intend to pay. Your lenders may accept interest-only payments for a short time. Remember they are interested in getting their money back rather than writing off a loan.
Deb consolidation may be an option for you. With this you borrow enough to pay off all other loans. However, you must be totally serious about living on cash only until the loan is repaid. This is especially important if you are using a home-equity loan for consolidation, because you could lose your home!
If concessions aren't acceptable by your lenders and you just don't dare to consolidate then you really need to find help through one of the hundreds of nonprofit counseling services that belong to the National Foundation for Consumer Credit. Counselors will help you draw up an appropriate budget and will also work with your creditors. They can often arrange more lenient terms than you would be able to. If you can't find a nonprofit counselor in your area, you might want to try a commercial counselor; however, you'll be charged a fee as high as 15% of your debt. Be on the safe side and call your better business bureau to make sure they are licensed before you sign anything!
Your last resort is bankruptcy, which is not to be entered into lightly or with the thought that you needn't repay what you owe. Have all of this in mind as you go out shopping for your Christmas gift giving. Perhaps this year the mission stores would be the best option and your money will go toward a great cause while keeping you within your means. With prayer and perseverance you can regain your balance and begin to live debt free.
posted on: 12/6/2011 12:00:00 PM by Judy Warmington
category: The Mental Side
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Judy Warmington, Woman Time Management (owner) -- Busy wife, mother of three adult/married children, grandmother of 10 (5 boys and 5 girls!), former high school teacher (M.A. from W.M.U.), Speaker, Author, Radio Personality, and Trainer of Professional Organizers.