One of the biggest disservices that we do to ourselves as consumers is when we hide from the credit card company or others we owe. Credit card companies shouldn't have to hunt you down. In fact, there are five times when you should be the one to initiate a phone call with your creditors. These five instances revolve around what we call the Dreaded Ds, referring to the time in your life when you might suffer a:
Death in the family of the main breadwinner
If any one of those five things happens to you or somebody close in your family, it can totally throw your finances out of whack and it could definitely make you wind up in debt. So if get a pink slip, you find yourself in the throws of a divorce, or you wind up sick and disabled, don't be like the ostrich that sticks its head in the sand. Ignoring the problem won't make the bills go away. Pick up the phone, call your credit card company immediately, and explain your situation.
Request Mortgage Payment Relief If Necessary
If you have a mortgage, pick up the phone and call your lender as well. You might not necessarily need to ask for forbearance or deferment or any kind, but you should definitely let them know about your changed circumstances. Say something like, "At this time, this is my situation. I've just received a notice from my company that I am going to be downsized and I am going to be terminated as of X date in the future," or "I have just been terminated effective immediately, is there anything that your company offers for people who are in my situation?"
You may be surprised to learn that lenders of every kind have many different programs and offering to help clients with financial problems. For example, if that creditor happens to be a mortgage company, do you realize that they have "workout" programs, as they call it? I used to be a Wall Street Journal reporter for CNBC. And when I was on air at CNBC, I will never forget doing a TV report on how to prevent foreclosure.
The gist of what I learned is that most banks, and certainly the large mortgage lenders, have entire departments devoted to helping down-on-their luck customers. Countrywide, for example, has a full-fledged division called the workout department that is designed to do nothing but aid consumers who have experienced financial difficulties. Their goal is to help you to get back on track. When they send letters or call, it's not that they are trying to harass you. They're trying to find out what is the situation, what is the problem, how long will it take for you to recover, and what can be done in the meantime to help you.
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
The first time I called in I spoke with a loan consultant immediately. The representative that I spoke with was knowledgeable and able to answer all of my questions. He took me through each step of the application and explained all of the details. He was extremely friendly and I thank him deeply for helping me through the consolidation process. - Greg M. , NC
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.