Keeping up with Bills after Job Cut
By J. McKenna
Have you recently learned that your job is being
cut? What can you do to keep from getting buried with bills?
Contact your creditors right away and/or work with a credit counseling
service. Try to work out a plan that will reduce your monthly payments to an
amount you can handle until you begin a new job. Don't wait until your accounts
have been turned over to a debt collector. Late payments and non-payments will
show up on your credit record, and that can negatively affect you in the future.
A poor credit record may mean higher interest rates on loans, higher insurance
premiums, being turned down as a renter - and could even stand in your way of
getting the job you want.
There are several advantages of working with a
credit counseling service. A counselor can help
you analyze your income and expenses and
identify areas where you can cut back as well as
suggest strategies for saving money. A counselor
also can negotiate a repayment plan on your
behalf.
Last year, about 3 million people took advantage
of credit counseling services. That number is
expected to rise dramatically for two reasons:
the uncertain economy and the new bankruptcy
law. In the future, anyone considering
bankruptcy will be encouraged to seek credit
counseling.
Credit counseling is available face-to-face, by
telephone and over the Internet. No matter which
process you prefer, Consumer Reports (July 2001)
recommends that you ask seven basic questions:
- What will counseling involve?
- How much training do counselors have?
- What information do counselors need from me
to make an assessment?
- What is the most I will have to pay?
- What sources of income does the counseling
service receive?
- How long is the wait for counseling?
- How long does the counselor take to assess my
financial situation?
For face-to-face counseling, contact The
National Foundation for Credit Counseling
(NFCC), 1-800-388-2227; Web site: www.nfcc.org.
Locally, call 229-0695.
The InCharge Institute of America at
www.incharge.org offers credit and debt
counseling and management by phone and counsels
consumers who are considering bankruptcy. Call
1-888-454-2355.
Myvesta, an Internet-based agency at
www.myvesta.org, can be reached at
1-800-680-3328. There are many more, so shop
carefully.
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