Karens last blog post..Western Tanager

Many years after I left that awful crap job, FabGrandpa was in hospital for 4 days and had a gazillion tests, all of which we were oligated to pay as we have no health insurance. As soon as he got home, I gathered information showing our monthly obligations, our income, our rent, and a statement from the doctor saying he would be out of work of work for 7 weeks. I took it all to the finance office of the hospital and met with a financial social worker, who took our file to a financial board meeting, who reduced our debt by 50% and gave us an affordable repayment plan. All this was done before we even received the first bill in the mail. And, if you wait until you get the first past due notice, it is already too late to get help.

My advice to anyone who has debts, and something happens so that you know you won’t be able to pay what you owe, is to call right then, talk to everyone you owe, and make a payment plan you can easily afford. It will keep the phone calls, the letters, the garnishments, the lawsuits out of your life.

Oh, and if you really do not have the funds to pay everyone, pay your rent, your utility bills, and buy groceries first, then pay on the bills you owe the most on. Most places have limits under which they do not pursue “further collection action” even though they will send you a letter saying they will. The higher the balance is, the more likely they will pursue collection.

Karens last blog post..Western Tanager

For those payments, you’re just throwing money down the tubes. If you are so in debt that you can’t make your full mortgage payment or full credit card payments, you really should consider bankruptcy, as awful as that sounds.

Seek professional advice. Not necessarily a bankruptcy lawyer (they get paid first when you file) but a reputable credit counselor. Good luck find one of those.

Yes, I’m cynical.