Christian Counseling Debt  

Several recent studies indicate that christian counseling debt is high on the nation's priority list because Americans' debt is rising alarmingly fast and high. In fact, many people have an average of 11 credit cards, where last year it was only 8.

So, what can you do when all of a sudden the end of the month at hand and you either have nothing left to make your monthly payments and worse, nothing to start the new month with?

Setting Your Priorities

Some debts are actually more important than others especially when faced with an emergency like nothing to live on. Here are some hard facts to get you through your dilemma.

• When it comes to your Rent/mortgage, You won't get far without a roof over your head. If your situation is bleak and you're looking at financial distress over the long term, christian counseling debt advises that you might have to consider selling, downgrading or relocating. Clearly, housing is an essential part of living so this would be a high priority.

• Your Utilities
With housing comes the need for utilities. Don't even consider eliminating your gas or electricity. The way to deal with this is to reduce usage as much as possible and making sure you pay gas, electric, and water. This also, is a high priority. your phone and cable, however, is a different story. While the phone is still optional, the cable is a no-no and should go until better times are at hand.

• Child support
This is definitely NOT OPTIONAL. Payment is a must! is not. Plan to pay it.

• Car Payments
Unless your car is for working purposes, you should get rid of it. Between that, insurance and maintenance, you will save quite a bit. Opt for public transport. If you need the car for a job, it is an essential. If there is alternate transportation, the car and insurance may have to be a non-survivor.

• Secured Debts
Secured debts are any form of collateral ( your house, car, furniture, etc.). Make sure to contact your creditors and explain your dilemma. They may cut you some slack, and yes, your . our credit score may suffer, but is this is an an emergency you have no choice. If this disaster is long term you may have to consider giving up your property.

• Unpaid Taxes
Don't ignore this one.You don't want the government at your door

• Food-
Although this is a priority, filet mignon is not. Buy cheaper grades of meat, sale items and use coupons and common sense.

• Unsecured Debt-
Unsecured debt is a loan without collateral attached. For example: credit cards, department store loans, gas cards, medical bills, any loans coming from friends. If you fail to to pay these it will do some damage to your credit score and your good name but over the short term, this is survivable.

Christian counseling debt - Plan Of Action
-List all your bills and their amounts. Sequence them according to priority to be paid (numbered 1, 2, 3, etc.) Begin with your mortgage as #1. At one of the priority numbers determine where "Must Pay" ends and "Should Pay" should start. Draw a horizontal line here and continue down your list. You might now reach a point of ending "Should Pay" items and find you are in an area of "Would Like To Pay". Draw another horizontal line.

- Start paying priorities 1, 2, 3, ... until you're out of money or finished with "Must Pay." Determine your deficit to "Must Pay" items. If there is still some money, continue on with "Should Pay". If you run out of money, place their amounts on your deficit list. If there is still money left, continue on to "Would Like To Pay" until you run out money. If there is no money ignore the rest of the list since these items can be taken care of in better times.

- Get your deficit list together and contact your creditors. Many will be willing to work with you allowing a skipped payment, a lower interest, paying interest only for a month or two, or some other options. They may not but as they say, if you ask for nothing - you get nothing! ASK! (Using the term bankruptcy judiciously, "accidentally" can sometimes yield major power for you to get some breaks).

Christian counseling debt recommends that you talk to a debt counselor(not a debt consolidator). Share your list with someone you trust because sometimes another set of eyes can discover something or have ideas that have not been considered.

-Determine how you can make up the difference on your deficit list with some of these ideas:
1. Reduce expenses by applying many of the frugal concepts discussed here
2. Look for second job (short term)
3. Get a garage sale going and sell the things you don't really need. Rent something out.
4. Consider getting funds from your savings, 401(k), your insurance, and even friends. (**DO NOT cash in a 401(k).)
5. If you rent, see if you can barter some labor as a substitute for part or all of the rental amount.
6. Consider a reverse mortgage, equity loan on your home or car, or signature loan from a credit union. BUT do not consider this unless bankruptcy is the only other option, otherwise an additional loan will just make matters worse down the road
7. As an absolutely final resort, consider bankruptcy. However, please discuss this with a professional councilor.