SUDDEN DEBT : WHAT DO I DO NEXT?
Sudden debt can be overwhelming and stressful, but with a well-structured plan, you can regain control of your finances and work towards a debt-free future.
Follow these step-by-step instructions to navigate your way through this challenging situation.
STEP 1
Open the line of communication with creditors. Call them and speak with them to discuss your situation. Many are willing to work with you to set up affordable payment plans or offer temporary relief options. Always keep a log of:
Who you spoke to
Date and time of the call
Outcome of the call if a payment plan or temporary relief has been offered.
Following the call, if a payment plan or temporary relief has been granted, it's worth jotting this in an email to the creditor to confirm the new agreement.
STEP 2
Calculate the total debt, including interest rates and due dates. This will give you a clear picture of your financial obligations.
STEP 3
Add the debt to your monthly spending plan/budget. If you do not have a spending plan, now is the time to create one. Develop a realistic monthly spending plan that outlines your income and necessary expenses like rent, utilities, and groceries. Allocate as much as possible towards debt repayment while still covering essential needs.
For support building your spending plan, please feel free to reach out to me.
