Personal Finance
It’s difficult to look at finances and think personal, when no matter where you go, they request the last 7 years of financial history. Employers, banks, auto dealers, and even landlords all see personal finance as a lasting testimony to your character. So, how do you get your financial character back together when you have late payments, bad credit, and five to ten “unavailable” missed phone calls on your cell phone? What are your options?
Ignore It
Admit it, you just want to ignore the fact that these people want their money. It’s not that you don’t feel like you owe them, but how are you going to pay them without money? Yes, you can ignore them. However, the consequences can go as far as a court order appearance and judgment in your creditor’s behalf. How would that look on your financial background check?
Accept It
Write down everything you owe, even that $20 from your best friend a year ago. Arrange each debt from the lowest amount owed to highest and include the annual percentage rate. It’s best done in a spreadsheet. I will have one available in the near future. How much do you owe? Actually total it up and look at it. Now take a deep breath, maybe even two or three depending on the total owed.
The number in front of you represents your past. It does not represent who you are today or in the future. You can’t change the past, just learn from it. What matters is what you do at this moment forward. Once you have accepted it, which may take more than just a few moments, then it’s time to take action.
In the next finance blog, I’ll look at assessing your income, how that affects what you can or can’t pay and what to do when your bills exceed your income.
