Get On The Road To Financial Recovery Part I

Get On The Road To Financial Recovery Part I

Get On The Road to Financial Recovery Part I
What You Can Do for Yourself
Review your specific obligations that creditors claim you owe to make certain you really owe them. ​
if ​ you dispute a​ debt, first contact the creditor directly to resolve your questions. ​
if ​ you still have questions about the validity of​ the debt or​ the collection practices, contact your state or​ local consumer protection office or​ state Attorney General.
Contact your creditors to let them know youre having difficulty making your payments. ​
Ideally, this should be done before a​ payment is late or​ missed. ​
Tell them why youre having trouble perhaps its because you or​ a​ spouse recently lost a​ job or​ have unexpected medical bills. ​
Try to work out an acceptable payment schedule with your creditors. ​
Most are willing to work with you and ​ will appreciate your honesty and ​ forthrightness. ​
Many have hardship programs which provide for adjustment of​ payments for a​ period of​ time.
The Fair Debt Collection Practices Law prohibits a​ debt collector from showing what you owe to anyone but your attorney, harassing or​ threatening you, using false statements, giving false information about you to anyone, and ​ misrepresenting the legal status of​ your debts. ​
Remember that under other federal laws to collect debts, creditors cannot seize most government assistance and ​ can only garnish a​ portion of​ wages to collect debts.
Budget your expenses. ​
Create a​ spending plan that allows you to reduce your debts. ​
Itemize your necessary expenses such as​ housing and ​ health care and ​ optional expenses such as​ entertainment and ​ vacation travel. ​
Start a​ savings plan so that funds are available for unforeseen but essential expenditures. ​
Stick to the plan.
Try to reduce your expenses. ​
Cut out any unnecessary spending such as​ eating out and ​ purchasing expensive entertainment. ​
Consider taking public transportation rather than owning a​ car. ​
Clip coupons, purchase generic products at ​ the supermarket, and ​ avoid impulse purchases. ​
Above all, stop incurring new debt. ​
Consider substituting a​ debit card for your credit cards.
Use your savings and ​ other assets to pay down debts. ​
Withdrawing savings from lowinterest accounts to settle highrate loans usually makes sense. ​
Selling off a​ second car not only provides cash but also reduces insurance and ​ other maintenance expenses.
Look for additional resources from governmental and ​ private sources for which you may be eligible. ​
Government assistance includes unemployment compensation, Aid to Families with Dependent Children AFDC, food stamps, lowincome energy assistance, Medicaid, and ​ Social Security including disability. ​
Other resources may be available from churches and ​ community groups. ​
Often these sources are listed in the Yellow Pages of​ your phone book.

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