| When Dumpty Humpty fell off the wall the creditors | | | | important. In most cases the mortgage payment |
| started calling and sending threatening letters all about | | | | obligation will be in the highest priority pile then home |
| what they were going to do to you and your credit. | | | | utilities. Everything else would be secondary, |
| With speed dialers and predictive dialing systems | | | | otherwise, you may be moving soon. The credit |
| there is no escape from this onslaught of | | | | cards would be stacked in a pile and by priority other |
| harassment. Only a positive and proactive plan can | | | | stacks may be separated as well. All this information |
| meet and beat this bombardment from the creditors. | | | | needs to be listed on a sheet with due dates with |
| The pieces after the fall can be put together again | | | | balances and required payments. The customer |
| and it wont take all the kings men, you can do it | | | | service numbers need to be listed along each item |
| yourself. Im assuming there is some cash flow and | | | | together with the account numbers. It is here that |
| some continuing employment for what follows. | | | | brutal honesty must prevail on what absolutely must |
| Like other challenges, whether it is medical, academic, | | | | be paid. If there are children involved and can be |
| work or whatever the case, a proper assessment of | | | | included in the discussion then all the cards must be |
| where you are at is the first step and by recognizing | | | | laid on the table. They will figure it out by themselves |
| there is a problem is in the forefront and foremost | | | | soon enough. It will be an important life lesson for |
| to a solution. An inventory has to be taken of | | | | the future when they have the opportunity to start |
| income, living expenses, luxury items, and monthly | | | | making their own way and have credit choices to |
| debt that must be met. If it is a married couple, both | | | | make. The vision of the pile of bills stacked on |
| have to participate in this process from start to finish | | | | kitchen table will be a strong example if credit |
| to have a chance at any success. A foreign term to | | | | privileges are abused. Likewise, when this situation is |
| many households is the word budget. After the eye | | | | turned around the children can feel a real sense of |
| rolling and plowing through the denials of any | | | | accomplishment, as they were part of the process |
| existence of a problem a decision needs to be made | | | | to a winning resolution. |
| to address the challenge of being upside down on | | | | There are many books at the local bookstore, which |
| consumer debt. The alternatives are not pleasant. | | | | contain budget forms to guide you through this |
| This single issue of consumer debt has plunged many | | | | daunting process of putting the financial pieces back |
| a marriage into the divorce courts further | | | | together for you and your family. When this |
| complicating an already challenging situation. If an | | | | information is quantified so that you can see the big |
| individual or a couple can come to grips with saying | | | | picture then a strategy can be laid out to turn this |
| yes to working out a plan that is a winning point in | | | | predicament around. If necessary, depending on the |
| the first skirmish of this battle. | | | | severity of the shortfall, each credit card company |
| All the credit debt has to be laid out on say the | | | | can be contacted immediately and work out a |
| kitchen table from: the home mortgage payment | | | | repayment plan at a reduced monthly payment. |
| obligations, all credit cards with balances, utility bills, | | | | Other items in the stack need to be dealt with |
| cable bills, cell phone bills, water and sewer bills, | | | | similarly to get an accommodation for repayment. |
| garbage bills, club memberships, spas, book clubs, day | | | | Cards need to be cut up and perhaps settling on |
| care requirements, lawn service, health insurance, life | | | | using a debit card only. Ways to increase income |
| insurance, disability insurance, maintenance contracts, | | | | including a part time job need to be considered right |
| gasoline cards, auto repair bills, auto insurance, school | | | | away. If you have been getting an income tax |
| supplies and expenses, internet service, magazine | | | | refund every year, adjust your W-4 for exemptions |
| subscriptions, team sports and leagues, recreational | | | | immediately and get more cash flow now. Once you |
| activities, vacation plans, 401(k) and IRA status or | | | | decide to dig out and turn this around, there are |
| other retirement accounts, religious donations and | | | | really only three options. (1) Make more money. (2) |
| pledges, charitable contributions, your current with | | | | Reduce expenditures. (3) Do Both. This situation can |
| holding exemptions for income tax and any other | | | | be turned around in a few years. A budget with a |
| type of expenditure that is made on a monthly or | | | | planned savings program has to be primary then start |
| yearly basis. From this step you can start prioritizing | | | | paying off the mortgage early and save even more |
| each expenditure by establishing separate piles and | | | | cash. You can win this game. |
| stacks of bills from the most important to the least | | | | |