Stop running to title loan companies

Look, like most people, I, myself have in the past thought the only way to stay afloat was to run to my nearest title loan company to borrow money in a hurry.  Creditors would call and out of fear, embarrassment, or intimidation, I would feel the need to have the money right now to pay bills.  Without thinking about the $400 or $500 that I would probably have by the next pay, I would borrow from the title loan company.  The title loan company would then charge me about $100 on top of what I borrowed.  This would then probably leave me short the next pay from paying another bill and it becomes a vicious cycle. 

What was the harm in me telling the creditor that the payment would be late and giving them a date that I would have the payment? 

If you are short on a payment, why not just make a partial payment to the creditor and pay the remaining balance the next pay period?

If I had been upfront and stuck to my guns with the creditor.  I would not have to pay additional $100 on top of what was due.  It is the collector’s job to try to get you to pay today while on the phone with them so that they can meet their quota.  But you have to be honest with your situation.  You will be surprised by being open and honest that sometimes you receive assistance from the same creditors who aggressively call you for payment.   You will definitely get back on track sooner when you borrow less…  Just save the money you currently have and add that to what you will receive you next pay period.  Your troubles will be over within just a few weeks.  That is much better than drowning your self into debt for months or even years.

Steps to keep you on track and out of title loan company offices:

1. Create a budget for the next few weeks or months. 
2. Make the payment due to the creditor a priority in your budget
3. Using the budget, produce a date that you will have the money to pay the creditor
4. Contact the creditor with the date that you will be sending or making the payment over the phone
   • If you have to break up the payment amount into several smaller amounts, provide the creditor with the dates and amounts
   • Request the creditor document your account with the date of the payment(s) and amount(s).
   • If automatic payments can be scheduled, schedule your payment(s) with the creditor using your checking account.
   • If you can make a partial payment, notify the creditor that you are making a partial payment in the amount of …. (the amount you can currently afford to pay now)  and provide them with a date that you will pay the remaining balance.  Do not forget to make sure that the creditor documents your account with the following information: 
     • document that you are making a partial payment
     • today’s date or the date that you will be making the first installment of the balance due
     • the amount you are paying for the first installment of the balance due
     • the date you will be paying the remaining balance
     • amount of the remaining balance.
5. When speaking with a creditor always write down the name of the person you are speaking with, their direct phone number or department phone number, phone extension number if available, and document as much as you can about what you have discussed as possible.

Position yourself

Are you happy with your current job?  Are you unemployed?  Are you doing what you always dreamed?

Position yourself to do what you have always wanted to do.  Whether it is taking classes or getting a degree to go for the job of your dreams?  Or saving the money to open the doors to your own business?  Position yourself. 

Remember when you leap, you have little control of where or how you land.  If you position yourself well, you will land on target.

How to position yourself

First, write down your dreams and goals in the order you want to achieve them.

Then, research the requirements and costs to complete tasks necessary to reach your goals.

Create a timeline for achieve your goals. 

Create a monthly budget.  Stick to the budget. 

Decide on a date to achieve your financial goals necessary to reach your career and entrepreneurial goals.

Ex. If it is February 2009 and you want to open a business in a year with associated start up costs of $7500.  You would need to divide the cost by 12 months.

$7500 / 12 months = $625

$625 / 4 weeks = $156.25

You would need to budget and place into a savings account $625 a month or $156.25 per week to reach your goals. 

If you stick to your monthly budget and cut back on unnecessary expenses.  You will find the means to reach your goals and obtain the necessary funds to make your dreams a reality. 

Leaping can be a hard fall.  Positioning yourself will land you on target.