I Can't Pay My Credit Card Bills - What Should I Do?Have you been shopping a little too much and chosen to ignore the bills that are piling up for a little too long? Is your mailbox full of notices and warnings from your creditors? To make things worse, right now you dont have the money to take care of this financial mess? What do you do? First, dont panic. Take a few deep breaths and lets begin ... Write An Action Plan This is no time for hiding. Face the problem headon. Is the problem of paying off the bills only temporary such as lost job or other income loss? If your problem is temporary list out 3-5 possible solutions. Figure out what the best course of action is and take that first step. Get back on the road to paying those debts or you'll have to deal with this for the next seven years. Thats how long unpaid debts hang around on your credit report. Take the first step You've made a plan. Good! Now take the first step. Instead of waiting around to be called by the creditor, call the company yourself. Figure out what you're going to say before you make the call or goto their office. Come up with a proposal that you think they will accept. Analysis and Preparation Now its time to figure out two things - one where is your money going right now and how to deal with each creditor. For the first one, figure out how the money flows into your account at the beginning of the month and where it flows by the end of the month. Use the free Quicken Online tool to keep track of your transactions. Next, figure out your payment history with each creditor. The ones that you have a lengthy credit history with and the ones you've been paying on time for an extended period of time are likely to be more lenient. Chalk out your options. Backup Plan What if your proposal is rejected? What if the companies are still breathing down your neck? Read Debt Relief - How do I Pay Off My Credit Card Debt Quickly for some ideas on tackling this.
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