How
Can You Help Yourself? (Part I of IV)
Whenever anyone is faced with what seems to be insurmountable debt, the
first question they should ask themselves is whether or not they can do
anything to help themselves out of this problem or if there is a need for
professional help instead. The fact of the matter is that it really is a
time line. Up until a certain point you really have to take charge of it and
see what you can do to turn things around. However, once you hit that point,
only professional help will do.
First thing you have to do is develop a budget for yourself. You cannot get
a grasp on your money until you look at the numbers on paper and see where
your money goes and how much you really have to spend. To do this you need
to list all of your sources of income and all of your expenses. The amount
left is the amount you have leftover – and you can decide where this goes:
savings, pay down additional debt, etc.
If you are having problems figuring out your budget you can go to the
library or the internet for assistance. Many online sites will give you a
mock up of a budget and that will get you started. If you have money to blow
on a computer program, some of them are quite helpful as well.
The next thing you need to do is to call your creditors and tell them that
you are having financial problems and see what they can do for you. Many
times they will reduce your monthly payment, or lower your interest rates,
or even postpone payments for you. Don’t wait until it is in collections
because they usually have no control over them at that point.
Next time: Dealing with collectors
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