http://www.painlessfrugality.com/2009/07/youve-been-laid-off-inform-your-creditors/ tightening your belt, without losing your edge... Fri, 30 Dec 2011 20:21:37 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.painlessfrugality.com/2009/07/youve-been-laid-off-inform-your-creditors/comment-page-1/#comment-11 Ela Wed, 08 Jul 2009 05:19:17 +0000 http://www.painlessfrugality.com/?p=34#comment-11 This is excellent advise for someone who is about to default on their mortgage; most mortgage companies will work with people. If you have been laid off, one must prioritize where the little money that's coming in will go. The reality is that you have to have food, shelter, utilities and probably a car. You have to immediately drop everything else; the gym membership, cable, restaurants, etc. The last payment you should make is to credit card companies. Something has to give. The experience I had (an others I know) is that the second you are late on your credit card payment your interest rate jumps up. Not just for the card you're late on either. They pile on late fees and higher interest and make demands that are unreasonable. My experience was they were unwilling to work with me at all. They called the house daily, even though someone at the company had been told that payment would not come until a specific date. I found that unless you can be very specific about when you can pay they will immediately threaten suit. You are not required to subject yourself to constant telephone calls. You can advise them that you prefer to communicate via the US mail. If you have a lot of credit card debt that can not be paid back you may have to consider bankruptcy, because the credit card companies are not hestitant to sue or sell your debt to a junk debt buyer whose sole business is to win profits awarded by the court. This is excellent advise for someone who is about to default on their mortgage; most mortgage companies will work with people. If you have been laid off, one must prioritize where the little money that’s coming in will go. The reality is that you have to have food, shelter, utilities and probably a car. You have to immediately drop everything else; the gym membership, cable, restaurants, etc. The last payment you should make is to credit card companies. Something has to give. The experience I had (an others I know) is that the second you are late on your credit card payment your interest rate jumps up. Not just for the card you’re late on either. They pile on late fees and higher interest and make demands that are unreasonable. My experience was they were unwilling to work with me at all. They called the house daily, even though someone at the company had been told that payment would not come until a specific date. I found that unless you can be very specific about when you can pay they will immediately threaten suit. You are not required to subject yourself to constant telephone calls. You can advise them that you prefer to communicate via the US mail. If you have a lot of credit card debt that can not be paid back you may have to consider bankruptcy, because the credit card companies are not hestitant to sue or sell your debt to a junk debt buyer whose sole business is to win profits awarded by the court.

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