You have no money. Now what?
This page will cover the basic options that apply to just
about everybody.
The first step is to
consider what happened to make you realize that there was a
problem. What was the triggering event or wake up call? Was
it just that your bank balance finally reached zero or gone
negative?
Or did you get laid off? Or
are things even worse, like your house is about to be
auctioned in foreclosure? Taking a quick look at what is
going on around you will help determine what needs to be
done first. Obviously if your home is about to be auctioned
off, you need to stop reading this article right now and
call an attorney. There is no time to waste.
You can deal with everything
else in due time. The second step is to not change anything
until you know where you stand. Take stock of your
situation. Write it all down. What do you own and what is it
worth? What do you owe for debts and to whom?
What is the monthly income
from all sources? What are your living expenses? It is
important that when you are considering your expenses that
you do not mix debt payments with necessities like food,
lights, heat, shelter, health care and clothing.
Once you have listed the
basics, flesh out what you know. Get the specifics. Who are
your creditors? What are the account numbers and terms for
repayment? What can you expect with regard to your income?
Will it go up or down in the near future? How do you know
what your stuff is worth? IF you own a home, call up a
realtor and get a market analysis to see if your estimate of
value is real. You can check car, motorcycle, RV and boat
values online. Look around the house, do you have anything
that is really valuable?
So the first step is to take
a deep breath and take stock of where you are now. This will
be your starting point.
