Already Drowning in Debt?


Even if you feel like you’re just barely getting by or like you’re starting to go under, there are plenty of things you can do to improve your situation. You can recover and get back on track with your finances.

“Beware of little expenses; a small leak will sink a great ship.”
Benjamin Franklin

Before you can get to a better place financially, you need to clearly chart your current position. Budgeting: it really is like GPS for your money. Use the online worksheet to track your current monthly income and expenses. You may be surprised what you learn about your spending habits. If you follow the money, it’s likely that you will identify places where money is leaking through the cracks; money you can redirect to your benefit.

Contacting Your Credit Card Company Directly

Call and speak to an account representative. Explain that you are having a hard time making your payments. Try to work out a modified payment plan with lower monthly payments, request a reduction in your interest rate, and ask them for their suggestions and their help. The fact that you’re contacting them directly will be seen positively and as an indication of your desire and intent to repay.

Know Your Rights

You may be behind with your payments, but that doesn’t mean you have no rights. Be sure you understand what credit card companies and other creditors can and cannot do in attempting to collect money you owe them. The Fair Debt Collection Practices Act dictates how and when a debt collector can contact you.