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