Re: Divorce and Debt Settlement
12-15-2010 11:51 AM
My suggestions -
* no, do NOT quit your job!
* put together a realistic budget of living expenses
* look what you can cut back on/delete, ie: cable, cell phones, etc
* redo the budget and see what you have for disposable income
* make a list of your bills, balances, etc
* call the creditors up and explain that you have x amount of money per month to pay x number of creditors. You would REALLY like to pay your bill with them and would like to know what they will work out with you. I have helped family go from $1500 a month payments down to $274 a month payments. That is the most dramatic example I can offer. Some creditors will offer zero interest for 6 months, or a lower rate with a 5 yr pay off plan, skip a payment, etc. The best thing to do is know where you stand financially and talk to your creditors.
* be prepared to discuss your income, your expenses, and your assets. I would not mention the retirement plan since you can not access it. If you can, reduce what you are paying into the system to the bare minimum being matched by your employer.
Make a plan, make a goal, go for it -
Current and future creditors, possible landlords and employers, look more favorably upon someone who paid their bills than those who don't.