Due to unfortunate circumstances in our nation as well as around the world, many of us are struggling to make ends meet. We have rising prices in cost of heating and cooling our homes, using our car and daily or weekly shoppers are shocked at cost increases in groceries, clothing and other miscellaneous items. One wonders how we manage to deal with these expenses.
Those with adjusted ARM home mortgages, car and credit card payments in addition to normal costs of living often just can't stretch their available income to cover everything and sometimes the house mortgage is one of those left unpaid.
Giving In To Skilled Collectors – Be Strong
We frequently receive unwanted and unnecessary threatening phone calls from collection agencies for our past-due credit cards. When faced with choices of which bills to delay a month, we give into the pressure and make the minimum credit card payment. These collection agencies are quite skilled in intimidation and scare-tactics and sometimes that's the best method to get overdue payments as the debtors just want to get rid of the harassment.
Living Expense Needs Before Credit Cards
Although not proper to neglect to pay your just debts when money is limited, decisions need to be made as to importance of the bills you are facing. Being on limited income and continuously facing higher costs of living, it's a necessity to decide on what takes priority for payment and what can take a "backseat" for a month or two.
Housing, car payments, utilities and food costs must be met. Also, to be considered are insurance premiums. In some communities, medical needs will not be met unless one carries insurance, although the cost of these premiums can increase budget costs. Insurance that state laws insist upon is car insurance, because should you not carry liability coverage and are involved in a car accident, serious legal consequences will follow.
Considerations in Bill-Paying
After planning your budget and ability to pay the most necessary bills, then should you have money remaining, make those credit card minimum payments. If left without any money, then don't be stressed out over the unpaid credit card bill(s). It is not likely your wages will be garnished. You will probably receive more unpleasant phone calls from credit card collectors, so calmly explain you've paid your main housing/living expenses and have depleted your funds.
If bill collectors get nasty, lose their temper or start being obnoxious, you could lay phone down without hanging up and walk into another room. Losing your "cool" and responding to their verbal abuse lets them "win" which is their real motive or intention.
Survive First Catch Up Later
After your financial circumstances improve, plan on catching up on all your overdue bills especially clearing up your credit card indebtedness. Try to pay off the least amount owed first, and then apply that amount to the next higher bill. Eventually, you'll be able to get yourself out of debt. But, be careful after doing so, that you use wisdom in the continued occasional use and then only when absolutely necessary and if possible to pay entire balance off in a month when due.
Remember though that the most important issue is in keeping current on your house payments and normal living expenses.
If you want more information on negotiating with bill collectors Negotiating with Collection Agencies, Bill Collectors, and Debt Collectors - 10 Tips.
