I’ve finished several steps of the Ramsey method (link):
- there is a 1000 dollars in an envelope for an emergency.
- i have paid all credit cards.
- within two months there will be sufficient money in the emergency fund in cash that could support me for 3 to 6 months in an emergency.
- i’m single with no dependents, so i don’t have to put away money for children’s education.
- i haven’t owned my place since 2001, mainly because in California real estate was not affordable, so renting was the only option.
- now i’m living and working outside the country, so buying a house is not an option at the moment.
i’m not sure what steps (4) and (5) would be for me. i have rolled an 401k into a traditional IRA and another one into an annuity. they lost 30% like most people’s 401ks did during the downturn. i’m contributing to another retirement plan. maybe in five years i could be buying a house that could be my eventual retirement place. retirement is probably 15 years away. once i have cleared debt and prepared for an emergency, it’s not clear what to do next other than stay out of debt, keep funding some investments and keep focusing on planning for eventual retirement and stay healthy.
I am now in a position where I am able to start paying back on some serioulsy deliquent accounts. I do not want to get out of paying. They are my respinsibility. What I am concerned aboutis their willingness to work with me. In this economy have you noticed collection agencies more willing or less willing to work with a debtor?
We are financial strapped but not deliquent. I have noticed that cc are less likely to work with me under these connditions. I think alot of it is getting to the right department or the right person. I would suggest you start with the debt with the highest interest rate or the oldest debt. On your credit report a history for example with a credit card that you’ve had for a longer time will help your credit rating more than a newer one.