Sometimes debt can seem overwhelming. In those instances, or even
before things get that far out of hand, get back to basics and try some
of these debt handling solutions.
BASICS – Lower insurance deductibles for your homeowners, renters and
vehicles policies where appropriate and save money. Don’t take chances
on bouncing checks; instead get covered with overdraft protection and
pay about the same as what it would cost for one bounced check to cover
our account for an entire year. Ask your banker about packaged account
services. Many offer free savings and checking accounts with free
overdraft protection and checks, free online bill paying and more. When
you shop, check your receipts, even for groceries. Many times items
ring up at incorrect prices. Sometimes store policy allows for no
errors, meaning you get the items free if it wrings up wrong. So carry
along a handheld calculator or pencil with small notepad to tally up
your charges.
REACH OUT- If you have medical debt, the first thing healthcare offices
try to do is get you to charge the bills or refinance your home, etc.
STOP. Before you take such a drastic step, check with legal counsel.
There are often other steps to take first. For example, notify the
billing parties and tell them you need to apply for financial aid. Many
have forms to complete, and although they may be lengthy, remember
they’re for free money to pay your bills. Reach out, take forms and
fill them out. Then set up minimum payment arrangements for the
remaining balances, even if it’s just $10 a month for 30 years.
Healthcare bills are not like credit card debt and do not need to be
reported to the credit bureau in the same manner.
Also reach out with merchandise and return any recently purchased items
that you can for a refund. Credit cards and mail order companies
generally allow you 30 days to inspect your purchase. Return any you
can for refunds. If purchases are beyond the 30 days and for various
reasons don’t hold up to their end of the “bargain;” i.e. they broke
already or never worked right to begin with, get on a letter writing
campaign pronto. Write the place of purchase and copy the manufacturer,
the distributor, the Better Business Bureau and your state Attorney
General’s Office. State the reasons our product is faulty and that you
want a refund. It’s often rewarding to get help with other entities
like these. No need to go it alone!
So before your debt gets out of hand, take charge and get back to
basics. Put some of these debt handling solutions into practice and
make the most out of what you have.
