ceruleanbill
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First, if its an interest charging bill (for example, a credit card), try to get the interest eliminated or reduced. Contact the organization that you owe the money to and see if they will agree to freeze the account -- no more charges on it, no more (or reduced) interest. This isnt common -- credit card agencies in particular like to keep charging interest, and sucker you in with low minimum payments - but its worth a shot, and costs only an email or a stamp.
Second, see if the debt can be renegotiated. For example, if you owe some amount at 5% interest, see if you can get a new load for the same amount at a lower rate of interest. The general idea is called 'consolidating loans'. Its much, much better to get a new loan with a lower rate of interest than a longer repayment period, because with the longer period (even if the interest rate is less), you end up paying out more, overall. Granted, you may not have a choice, but if you do, go for the lower interest.
Third, look into credit counseling services. These are independent agencies whose goal is to get you out of debt. They serve as an intermediary between you and the people you owe money to, trying to do the two things I just mentioned. Because they're known to the people who issue debt, they can frequently get breaks or deals that you cannot get on your own. They're not a soft touch -- they'll insist on knowing where your money is going, where its coming from, and they'll want you to write a budget and keep to it -- but they get it done, and they're usually free.
Fourth, establish a dialogue with the lenders. Even if they won't do squat for you -- won't renegotiate, won't freeze it, won't work with an agency -- by keeping in touch you establish a legal basis for saying 'look, I know I have a problem, I'm trying to deal with it in a professional, business-like manner'. That's an intelligent approach, and it will help if you find yourself in a court with these folks. Its one thing if you're a deadbeat; its quite another if you've tried to resolve it, and you can prove it.
I know that none of the things I said directly related to the 'little money' part of your question. The answer is simple, but very hard to do. You have to a) Do everything you can to generate money, and to aim it at vyour debt, and b) Find out every dime you spent that you don't have to spend, and knock it off. Be as stern and tough with yourself as you can. Consider loans where you can repay them more casually -- family, friends, that sort of thing. Consider getting a second job, if thats an option. Cancel as many expenses as you can - cable, internet, Starbucks. I know it hurts, but its not forever -- and every dollar, every DIME, helps.
You CAN do it. |
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