If you recognize more than two of these serious financial warning signs, then you probably need immediate help getting out of debt!

1. Danger & Warning Signs
2. Establish a plan by prioritizing your bills
3. Tools to help when contacting creditors

1. Danger & Warning Signs

• You cannot pay all of your monthly bills with all the money you bring home.
  
  
• Your minimum payments due on your credit cards exceed 25% of your total monthly net income..
  
  
• You cannot afford to save 5% of your income after bills are paid!.
  
  
• You are using credit to pay your monthly expenses!.
  
  
• You must borrow money to pay taxes, take a vacation, or pay for unforeseen expenses..
  
  
• You are late making payments, owe back payments, and/or can only pay the minimum payments.
  
  
• You have been sent to collections or a legal judgement has been placed against you..
  
  
• You have paid off your credit cards with a debt consolidation loan and then run up your credit card bills again..
  
  
• You have been turned down for credit.
  
  
• You are at the credit limit on most of your accounts..
  
  
• You have no idea the total amount of money you owe..
  
  
• If you lost your job you'd be in instant financial trouble.

Up 2. Establish a plan by prioritizing your bills

Prioritize Your Bills:

Individual priorities may vary; this is a guideline to help you establish a plan. Always talk to your creditors first . . . most will work with you!

1. Child Support- Law enforcement agencies can intercept tax returns, garnish wages, put liens on property, and suspend licenses if it is not paid.
   
   
2. Mortgage - - Foreclosure proceedings could start with just 2 missed payments.
   
   
3. Car loans- Some states allow repossessions with just one missed payment. Could you live and work without a car?
   
   
4. Taxes- Often, the IRS can work with you to establish monthly payments for tax debt.
   
   
5. Court judgements- Despite what the original bill was for, your wages could be garnished if you don't pay.
   
   
6. Utilities- Many utility companies will work out modified payment schedules or have some type of assistance program that you may qualify for.
   
   
7. Auto & medical insurance- Can you really afford not to have either of these? Weigh all the consequences before you don't pay for your insurance.
   
   
8. Bank Credit Cards- Try to make at least the minimum monthly payments.
   
   
9. Department Store Credit Cards- Most stores will accept lower monthly payments for a period of time.
   
   
10. Student Loans- Always contact the agency for a deferment before defaulting. If you don't pay, wages can be garnished or you could lose your tax refund.
    
    
11. Medical Bills- Try to arrange payment schedules before being sent to collections.
    
    
12. Small bills- Unless you think you are going to be sent to collections, smaller bills would not take priority.

Up 3. Tools for contacting creditors

Free Sample Creditor Phone Script

Free Sample Creditor Phone Log

Free Sample Creditor Confirmation Letters

If you've fallen behind on your bills, especially credit cards, don't panic. You may have several good options available to you. Your success starts by assessing your current situation and finding a trusted service provider that is licensed in your state.
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