What to Do When the Wolf Calls

Avoiding the phone? When creditors call, adjust your thinking to an attitude of gratitude. The gratitude attitude relaxes you and helps you think more clearly. (It also takes them by surprise.) Thank them sincerely for calling, tell them you have an appointment with a credit counsellor, then get off the phone, and make the appointment. Do not discuss your bills over the phone, unless you yourself have dialled the call!  If you have any rewards accumulated, cash them in. You are entitled to your points, but they disappear if you don't pay your bills.

Three Ways to Keep the Wolf  From the Door

(and off the phone)

1. Consolidation Loan Whenever you can't pay the full amount of a loan, apply for a consolidation loan. With most consolidation loans you have a smaller payment and a lot less interest.
2. Repayment Plan If the consolidation payment is more than you can afford, look into a repayment  plan.  Although lawyers do repayment plans, call United Way or ask the  Salvation Army for a referral to a Social Service agency that deals with debt repayment plans. A debt repayment plan stops the interest & phone calls.You cut up all your credit cards and repay the outstanding balance through the agency,  who charges an amount much less than interest on a consolidation loan. For some people,the idea of living without a credit card  seems impossible, but you can do it. (You also have the perfect excuse for those pesky telemarketing calls.)
3. Bankruptcy Sometimes unexpected things interrupt our lives that make it impossible to pay even negotiated payment plans. When everything is dark, bankruptcy can help you het back on your feet. You'll be in good company too (especially in this economy). You cut up all your credit cards and live on cash for seven years. Bankruptcy stops the interest & phone calls & you only repay a small portion of your debt through a trustee. At the end of seven years you start over with a fresh slate. Think of it as an PhD course in cash economics. Use it as an opportunity to learn about living off the grid, and graduate Cum Laude.

Although a mountain of debt can seem insurmountable, you will survive and get through it. Check out my blogroll at Deals4Canada for strategies that can help you survive. (International Visitors welcome!)