Yep… - Posted by soapymac
Posted by soapymac on May 01, 2000 at 10:51:07:
Been there, done that, and got the credit rating to prove it.
First, it depends on the source of your debts that is causing you to think about Bankruptcy. If the bills are as a result of a business failing, then I suppose that is a way out. I’m not trying to second-guess your accountant…I am not an accountant and I don’t want to step on toes here.
If those bills are caused by personal spending for “doodads,” (as Robert Kiyosaki calls them,) then you have another alternative you may want to look at. Check the Yellow Pages or the White Pages for an office of the Consumer Credit Counseling Service. They are a non-profit agency, funded by the United Way. They should be able to help you with the consumer debt.
There is one thing that I can not emphasize enough, however. If you go through the bankruptcy process, and you are relieved by the courts of paying those debts, WHAT DO YOU LEARN BY IT? If it is just a way to get out from under…and you DO NOT LEARN new habits, you will soon find your way back to the same spot.
No, I am not trying to back you into a wall here. I’ve walked this mile in my own mocassins and I will NOT do it again. Having walked that path personally, I would suggest:
List each debt. Call each account. Explain your position. Work out a minimum payment AND STICK TO IT…even if it means going without the fast food eats.
Organize each debt by the highest interest rate FIRST. Pay as much as you can on that, minimum pay the rest to keep them happy.
When the first is paid off, take that money and ADD IT TO the second highest interest rate bill. Add this to the minimum payment until you get the second one paid off. As you pay off each bill, repeat the process.
When you are talking with your creditors, explain that you have a plan IN PLACE, and you will be paying them THIS MUCH per month OR MORE. If they do not ALL “buy into the plan,” you will be forced into bankruptcy…and they will get NOTHING. (Strange, but do you realize what POWER this gives YOU?)
Get a second…or, in my case, a third…job. You have to have money for investing, to increase your cash flow, to pay off these bills. Dedicate THIS money solely to acquiring assets that pay you for owning them (i.e., “flips,” “Lonnie’s,” tax certificates…whatever.)
Easy? NOT BY A LONG SHOT!!! Took me better than five years. But sweet? Let me tell you this: my three children saw what their mom and dad had to go through (I did not hide any of this from them…I used it as a teaching tool.) None of them…I repeat…NONE OF THEM…will ever have to go through it on their own.
I’m stepping off my soapymac soapbox now.