I've been taking some action and calling my creditors to set up payment arrangements. Why now? I got my tax returns and I know what I did with it last year — which was pretty much squander it away. I did pay off a lot of debt, but it was too spread out. I wound up right back at square one when I didn't have money to keep my payments up. I don't want to see this money all go to waste.
So far, it’s not. I've been getting some really good terms: $10 payments with less that 5% interest as long as I make my payments. I wish I would’ve done this sooner but I'm glad to be doing it now. It’s such a relief to have the number of creditors calling at 8 a.m. down to 3 or 4 instead 10 or 11!
Accounts already in collections are a little different. They’ll settle for 60% of the debt, but I need to pay my part in 3 payments or less. It’s still a great deal, though, because I get to finish paying off a few cards and be done with them for good, since they are already closed. From there I can work on rebuilding my credit with the one remaining open credit card account.
I’ve decided to tackle moving later. I know I won't pass a credit check, so I doubt I'll be able to get my own apartment and reasonably priced rent. Meanwhile, I've been more proactive in the amount of money I spend on lunch at work so that I can have more money allotted to paying down my debt. It makes me feel better to say that even though it’s going to take me more than a year or two to pay off, I started down the path!