Debt consolidation – First steps

It’s been said that the best trauma surgeons have a slower pulse when shit hits the fan rather than the ultra-tachycardia that us mortals achieve when chaos begins. I’ve thought about that a lot lately when I watch the news and see job loss rates in the tens of thousands, month after month. And when I’ve seen the people I work with have to dip into savings accounts to pay off their monthly bills. No getting ahead, just lucky to tread water and stay afloat. I think of the unlucky ones out there whose debt is spiraling, transferring credit card balances to newer, temporarily interest free cards to hope to put off disaster for another month or two.

So what can you do? I mean besides binge drinking and kicking your pets.

The first thing you need to do is stop putting off meeting the disaster. Sit down, shake hands and stare at your financial situation in the face. Most everybody I know procrastinates or tries to ignore unpleasant work or thoughts (except the super-successful folks… gee I wonder if that means anything?). But even if you think you’re ignoring it, most of us carry around this nameless dread in the form of tension in your shoulders, or an upset stomach that is your sub-conscious’s way of saying, “hey!! this is a big deal buster!! We’re in trouble here!!” That tension does nothing to make your life better nor does it actually fix the problems. It just gives you an ulcer.

So sit and write everything down, even if you think you know the answers.

Make a list of all your assets

Bank account, equity in your home or car, possibly disposable “extras” like boats or 4-wheelers. Then open all those envelopes you’ve shoved to the bottom of some pile and write down all your debts – mortgage or rent, car payments, each of your credit card bills, school loans. Then next to each of these items, write down a contact telephone number and e-mail address. In my next post I’m gonna talk to you about what to do with all that information and how to get lower payments for your very own self.