Bankruptcy Alternatives

Money is tight. Tight is an understatement, money is non-existent. Every dollar that comes in goes out and you can't get your needs taken care of. The phone rings all the time. You are nervous and anxious and will do anything to avoid another phone call. It seems that nothing is right in your world. But there is! I have been there, in the bankruptcy path. It is a dark and lonely place. Mostly, you have become embarrassed and unsure of yourself and have no support system. The lack of a support system is something we do to ourselves to hide the fact that we are not making it. We feel like failures.

Looking back I would change so much. I would also take full responsibility for my actions and set out on a different path. Bankruptcy would have not been an option if I knew then what I know now. I hope if you are reading these words you heed my warning and at least give my ideas a try. After all what have you got to lose at this point?

1.The first thing is to own up to all your debts. Don't hide the envelopes when the bills come in. Put them all in one place.
Better yet, make files for each bill. Organization is your first step to control. 

2. Make a spreadsheet on Excel or Lotus or just on green ledger paper it doesn't matter where as long as it is in a place
where you can do the same thing each month and keep the prior months history. This is basically a list of all people or
businesses you owe money. The first section would be their name, address and phone number. The second sections
would be the total amount owed, the 3rd section would be the minimum payment and the 4th would be the interest rate. 

3. After the list is complete organize the list by interest rate - highest to lowest. 

4. Make a complete list of your income and household expenses - outside of debt, but including your home. Subtract these
expenses from your income. This is the amount you have available to pay down debt. For now there will not be any extras.