Update: August, 2020 - Well, it looks like the recession has arrived suddenly! With the Coronavirus/COVID19 pandemic currently sweeping the world, I put together a FREE Financial Crisis Survival Guide (blog post with available printable PDF) to help those of you either preparing for or responding to a cut in hours, layoff or termination.
Has your financial situation gotten to the point that you can't pay all of your bills? Are your creditors or collectors hounding you? Is the fear and anxiety driving you to the point of being emotionally paralyzed?
I've been there and I know how it feels, believe me. Not. Fun. At. All.
This post is meant to provide some temporary relief to get you to a place where you can get back in the fight again. So first of all let me say, don't fret, there's hope.
With 78% of the population living paycheck to paycheck, unfortunately this has become somewhat “normal" in our culture. More specifically, here's what the cycle looks like: earning money, spending money, not budgeting, not tracking expenses and growing eyes that are bigger than our wallets (for most people, not all).
That mindset would just make you “normal” in our modern marketing-industrial-complex influenced culture. It's the giant consumer vortex that has a choke hold on so much of our population.
Do you "get down" with Pinterest? Would you consider pinning this to one of your favorite boards?
Perhaps your financial situation has reached a point where it’s so far out of your control that it’s affecting your ability to provide for the basic necessities of life. Not a good feeling, right?
As a result of your desperation, maybe you’re moving into an “awaking” phase and are possibly even freaking out a little. And this “awakening” finds you in a place where you don’t have enough money to pay all of your bills. As the saying goes, “there’s just too much month left at the end of the money”.
So, what do you do?
The first thing I want you to do is to take a deep breath. Inhale and exhale. You’ve come to the right place and I want to help you to overcome this immediate situation with wisdom, calm and confidence.
And more importantly than that, I want to get you to a place where you never have to deal with this again.
The Four Walls - What To Do When You Can’t Pay Your Bills:
To get the percentage of each debt you owe, divide each debt by the total amount owed. Take that percentage and multiply it by each debt.
That will show you which amount to pay for each debt with your leftover budget money.
Admittedly, this part can be confusing and overwhelming, so please reach it for help when you need it.
Step 3: Send Letters/Make Phone Calls - As you make payments to your creditors, send a letter and make a phone call with each payment explaining your situation as well as your intention to pay.
Creditors don’t like getting partial payments, but something is better than nothing and communication about you’d situation and intention to pay is key.
Keep in mind that, in this process there really is no such thing as over-communication when it comes to your creditors.
The more and more frequently you communicate with them, the more accommodating, flexible and gracious they will tend to be.
Once we’ve put this immediate “cant pay my bills” fire out, I want you to get fired up About never being in this situation again.
I want you to download our free resource: “8 Steps To Erase Debt” plus the “8 Steps To Erase Debt Workbook” (Coming Soon) and begin to work through the material. If you need guidance, we can help you with that too.
This material, if applied consistently and correctly, will change your financial life forever.
I just want for you to get started and to get radical.
Like I mentioned earlier, living beyond your means is absolutely normal in our culture.
But it I don’t want you to be “normal” anymore. I want for you to be “weird” like I am; earning more, spending less than you earn, giving, saving and investing the rest.
I want you to grab this opportunity and resolve say to yourself, “never again”!
I used to be “normal”, too. Then I got weird…. REALLY weird.
And, weird just means that you use the desperate emotions you’re feeling right now as a catalyst to 1) get completely out of debt, 2) have at lease 3-6 months of expenses saved for an emergency and 3) NEVER borrow money again.
And again, if you’re looking for some resources to get started, you can download our free budgeting forms. Also, if you’re in a place where you’re ready to kick your debt in the teeth, here's the link to our free “8 Steps To Erase Debt”guide for you to use as your foundation.
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