Creditors :: When in doubt, pick up the phone

I have just learned this from experience today.  So, if you think that this couldn’t possibly work, take it from an average person who just did it and waited for the big “NO”.

If you have creditors hounding you for their money, especially if you are months behind, or for the sake of my argument – being sued, just try picking up the phone and talking to them.

We all get carried away, especially when it is just the easiest thing in the world to slide our credit cards and worry about the payments later.  However, times have changed in the last year alone.  The economy all over the world is feeling the harsh pinch, but I believe more so in the United States.  Creditors want their money just as much as we want money in our pockets.  Everyone wants to get paid and it is definitely coming more defined as the bleak news of homes not selling, stocks are falling, and gas prices are spiking sharply.

My current situation is that I am currently being sued by two creditors who want their money.  I was young and stupid when I racked up my credit cards, and even more idiotic to allow the time to pass by to even pay them off.  These two creditors were sold off to third-party companies whom I have tried to talk to.  I offered a small monthly payment until I can get back on my feet and make better payments.  They didn’t want to hear my amount, but their amount.  Those numbers didn’t mesh well, and I stopped answering my phone. 

The worst thing I was expecting to hear today when I contacted the lawyer’s office was “no”.  However, to my surprise, they offered me two options after I asked what could we do to keep this case out of court: (1) monthly payments or (2) lump settlement payment.  I was so relieved to know they were willing to work with me.  I took the monthly payments for now until I can make a lump payment.

So, this is my suggestion to those who are looking to get creditors off their backs:  just talk with them.  We are all not doing well financially right now, and creditors want to be paid for borrowing that money to you as you wish to be paid for you services.  Don’t leave them in the dirt, because they will hit hard.  Look into the laws and see what can be touched if they take you to court.  Most of our assets are protected in the state of Nevada, but that isn’t always the case in each individual state.

The most important thing is to not allow these creditors feel desperate enough to take you to court.  A lot can happen, and you can eventually lose out more in the end than you are in the now.

Get your budget down to where you can handle it.  When worse comes to work, make a list of what is necessary to survive versus the luxuries you have become accustomed to having.  If you are eating out 2-3 times a week, cut those expenses out.  I have saved a bundle by bringing leftovers to school for my dinners versus taking out food two nights a week. 

Look at the necessities, budget from their.  Getting a second job is not always the be-all answer, unless it is absolutely necessary.  Operate on bare bones if needed.  We have been doing this for quite awhile, and it has helped a LOT!  We have cut every piece of fat off we could until we were left lean and decent.  We buy clothes on clearance, wait for sales and clearance on shoes, etc.

I know I am preaching to the choir, and those who read this will say that this is easier said than done.  I wouldn’t disagree with that for the world!  It took A LOT for us to get down to bare bones.  I make the most simplest meals where I can freeze half of it or reuse items for different dinners. 

For instance, take a beef roast.  I have turned a decent roast into three different meals.  One meal would be roast with potatoes and veggies.  Another meal would roast beef sandwiches.  A third night would be shredded beef enchiladas.  The best part of all this is that I freeze the meat in two different portioned bags after the first dinner to have two other beef dinners in two different weeks.  With chicken, we have made it stretch out between a dinner, then chicken salad sandwiches for lunch, then then chop the rest up into some pasta.  The kids eat these ideas up and they are simple to make.

Give it a try.  Budget, keep in contact and communicate with your creditors, and do not allow yourself to be buried in anymore debt.  Take it from a person who is currently living it, it doesn’t pay to ignore the creditors!

 

Image #1 credit: BananaStock; Image #2 credit: BananaStock; Image #3 credit: BananaStock; Image #4 credit: Polka Dot Images; Image #5 credit: BananaStock; Image #6 credit: Jupiterimages