Living paycheck to paycheck is nobody’s preference, but many have either experienced it at one point or another in their lives or are experiencing it now. The biggest drawback of this financial lifestyle is that any disruption in income can have immediate negative effects on your tight financial situation.
If for some reason you had a disruption in your income – may it be due to job hours being cut, a loss of a job or a medical problem – you will now need to prioritize your bills. Payment of your mortgage or rent and food and medications for you and your family is an immediate necessity. Utilities (electric and gas, water), and medical and car insurance are next. Lastly, you should pay your car loan, phone and other miscellaneous bills (unsecured credit cards, personal loans, collection accounts, etc.).
Especially in a tight financial situation, you should have a budget worked out. If you haven't developed a budget, you need to do so now. Read this article for detailed instructions on how to make your budget. The point of a budget is for you to get a good idea of where you are spending your money and to determine if you need to make any changes, especially changes like reducing spending on things that are more luxury than necessity.
Usually, the most trouble people have after paying off all of their primary bills is paying their unsecured credit cards, medical bills, or collection accounts. One way to help your financial situation is to try and secure a part-time job. Also, you could seek assistance from a qualified debt settlement agency to determine if you have enough income to qualify for a debt settlement plan. A debt settlement plan removes interest rates and combines all of the credit cards into one monthly program payment to a level that you can afford. You would also benefit from a thorough review of your finances by an unbiased third party. You can either fill out a Short Application and a debt specialist will contact you within minutes, or you can call – (888) 703-4948.
Another approach is for you to do nothing and after 180 days or more, your creditor will likely charge off the balance and turn the account over for collections. The danger with this approach is that if you have an aggressive debt collector, the company may sue you in court for the amount owed. If the collector wins in court and receives a judgment, your wages could be garnished. In addition, a charge-off, collection account or judgment would be three large negatives on your credit report, not to mention the harassing phone calls you’d be receiving for months.
Finally, you could file for bankruptcy. I strongly recommend that you explore all your other options before filing for bankruptcy because it is the most damaging to your credit. Also, you will still end up having to pay a portion of the debt in a Chapter 13 repayment plan unless your income is less than the median amount earned by families in your state.
Whether you have unsecured credit cards, medical bills, personal loans or collection accounts, there’s help for you. The National Debt Relief Group can help with a free consultation. You can fill out our Short Application and one of our debt specialists will contact you within minutes, or you can call now – (888) 703-4948.
www.nationalrelief.com