There are certain reasons which will run you into money problems. They are
1.You count on your job and you have lost your job.
2.You got health problems or family crisis.
3.You have week assumptions and that you have ability to pay and failed to do so.
If you are working over time and in two jobs,still you are unable to pay money bills of minimum interest and living expenses on time.Then you are in money problems. Bankruptcy is not a solution every time to come out of problems. It works only for the people who has good number of assets,business or real estate.The first step that you need to do is analyze your income form you or your family members and basic bills and expenditures.They may include
1.Mortgage or rent
2.Car loan payment and transportation charges
3.Student loan payments
4.Insurance premiums,tax payments,property tax You shall also count monthly requirements like Food,Gas,Entertainment or recreation, Clothing, Credit card payments.
You can go through your three month average of your needs and average it. That may be the money you need per month.The basic reason for money problems is your expenses crossed your income levels.You have to reduce some of your expenses like spent on entertainment or clothing. You can set up tight budget to control expenditures.
By counting extra money that you have after basic needs you shall pay all basic minimum amount on each bill required to keep the ball rolling.With the remaining money you shall pay as maximum as possible for a single debit until that is cleared.First you shall focus on unsecured debit like credit cards and medical bills.
In the list of unsecured payments you shall start paying the one who has high interest rate.Again in the debits choosing the one who has high interest rate and unsecured that shall be the first preference to pay back. This will increase you moral level and self confidence. Stick to the same chosen payment until the debit is cleared and don't change it.
Contact your lenders in written and explain your problem to them.Your aim is not to gain sympathy,but to get a modified payment plan. You shall get a smaller monthly payment that is convenient to pay as per your budget.Request your lender to report your account as current so that your credit score will not be affect badly.This will increase your interest money but keep your credit report better.
Other option is to change the due date so that you will have some extra time to pay your bill.It is better to contact the creditors as quickly as possible to get the best deal.You shall deal with them before your credit report is effected.You shall not wait until you have missed a month payment and the details are sent to collection agency.
Late Payments:
Late payment is reported by each creditor differently and you shall use this option with care.You shall see that the lender shall not reporting your due to collection agency.This way of submitting your due as not collectible,your credit report will be effected and making it better will take a lot of effort.
If you have brief financial problem and going to be back quickly,you shall choose re-aging your accounts.Here you account is no longer as old and due and it will be treated as current.If the lender convinced they will treat your account as fresh and you need to pay all the money as usually.You need not pay late fee and fine.You can not get it easily and you shall convince them to convert your account as fresh.You may need to offer some money as first installment and for a small period,a bit more than minimum required money.
According to rules you are eligible for re-aging the accounts only when
1.The borrower shall show willingness and ability to pay the debits that he has
2. The account shall exist for at least for nine months.
3.The borrower should make three consecutive monthly payments or total of that shall be paid at once.
4. A loan shall not be rearranged more than once with in twelve years.
Collection agencies work on commission basis and some times they even get half of the collected money from the customer. They need to spend lot of time and call every customer many times to get the settlement.
They are supposed to follow certain rules as per federal law.They are
1. They shall call you only between 8 A.M to 9 P.M.
2.They shall not call you when you are at work as your employer do not like that kind of calls.
3. They can not Harris or abuse you.
4. They shall not lie to you and implement wrong cases on you.
5.They shall not use unfair practices to collect money.
6.They must identity them self first before asking for clearance.
7.Must honor a written request from you to stop further contact.
You need not inform where you work and where you are having bank accounts.They can not ask you to pay the debits after stature limits.To have a solid proof of your account activity you shall get a credit report and you will be having a good proof in your hand about the activity.
You can negotiate with collection agency and if they are not calling you regularly,they are not that much positive about collection of money from you.This is the inherent meaning that you can understand.
1.You count on your job and you have lost your job.
2.You got health problems or family crisis.
3.You have week assumptions and that you have ability to pay and failed to do so.
If you are working over time and in two jobs,still you are unable to pay money bills of minimum interest and living expenses on time.Then you are in money problems. Bankruptcy is not a solution every time to come out of problems. It works only for the people who has good number of assets,business or real estate.The first step that you need to do is analyze your income form you or your family members and basic bills and expenditures.They may include
1.Mortgage or rent
2.Car loan payment and transportation charges
3.Student loan payments
4.Insurance premiums,tax payments,property tax You shall also count monthly requirements like Food,Gas,Entertainment or recreation, Clothing, Credit card payments.
You can go through your three month average of your needs and average it. That may be the money you need per month.The basic reason for money problems is your expenses crossed your income levels.You have to reduce some of your expenses like spent on entertainment or clothing. You can set up tight budget to control expenditures.
By counting extra money that you have after basic needs you shall pay all basic minimum amount on each bill required to keep the ball rolling.With the remaining money you shall pay as maximum as possible for a single debit until that is cleared.First you shall focus on unsecured debit like credit cards and medical bills.
In the list of unsecured payments you shall start paying the one who has high interest rate.Again in the debits choosing the one who has high interest rate and unsecured that shall be the first preference to pay back. This will increase you moral level and self confidence. Stick to the same chosen payment until the debit is cleared and don't change it.
Contact your lenders in written and explain your problem to them.Your aim is not to gain sympathy,but to get a modified payment plan. You shall get a smaller monthly payment that is convenient to pay as per your budget.Request your lender to report your account as current so that your credit score will not be affect badly.This will increase your interest money but keep your credit report better.
Other option is to change the due date so that you will have some extra time to pay your bill.It is better to contact the creditors as quickly as possible to get the best deal.You shall deal with them before your credit report is effected.You shall not wait until you have missed a month payment and the details are sent to collection agency.
Late Payments:
Late payment is reported by each creditor differently and you shall use this option with care.You shall see that the lender shall not reporting your due to collection agency.This way of submitting your due as not collectible,your credit report will be effected and making it better will take a lot of effort.
If you have brief financial problem and going to be back quickly,you shall choose re-aging your accounts.Here you account is no longer as old and due and it will be treated as current.If the lender convinced they will treat your account as fresh and you need to pay all the money as usually.You need not pay late fee and fine.You can not get it easily and you shall convince them to convert your account as fresh.You may need to offer some money as first installment and for a small period,a bit more than minimum required money.
According to rules you are eligible for re-aging the accounts only when
1.The borrower shall show willingness and ability to pay the debits that he has
2. The account shall exist for at least for nine months.
3.The borrower should make three consecutive monthly payments or total of that shall be paid at once.
4. A loan shall not be rearranged more than once with in twelve years.
Collection agencies work on commission basis and some times they even get half of the collected money from the customer. They need to spend lot of time and call every customer many times to get the settlement.
They are supposed to follow certain rules as per federal law.They are
1. They shall call you only between 8 A.M to 9 P.M.
2.They shall not call you when you are at work as your employer do not like that kind of calls.
3. They can not Harris or abuse you.
4. They shall not lie to you and implement wrong cases on you.
5.They shall not use unfair practices to collect money.
6.They must identity them self first before asking for clearance.
7.Must honor a written request from you to stop further contact.
You need not inform where you work and where you are having bank accounts.They can not ask you to pay the debits after stature limits.To have a solid proof of your account activity you shall get a credit report and you will be having a good proof in your hand about the activity.
You can negotiate with collection agency and if they are not calling you regularly,they are not that much positive about collection of money from you.This is the inherent meaning that you can understand.
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