Chapter 9

Financial CPR: When things get really bad

 

 

 

By now, your plan for a lifetime of riches should be well on track.  You’ve worked hard to bring your money into balance.  You’ve created a plan to make your money last a lifetime.  You are building a Security Fund and moving towards a future that will be richer and more secure.

But sometimes things don’t go according to plan.  Sometimes, even when you are doing your best to put everything together, the pieces just don’t work.  You get laid off, and it takes months to find another job.  You get divorced, and your ex- leaves you with a cranky cat and a pile of bills.  Your business partner takes off to get in touch with his inner wildebeest or a refrigerator falls on your foot.  In short, there are times when bad things happen to good people.  And sometimes the bad things keep on happening, and it seems like you just can’t catch a break.

This is why it pays to know some financial CPR.  Just like real CPR, we hope you’ll never have to use your financial CPR training.  But we want you to have the knowledge, just in case.  We want you to know, somewhere in the back of your mind, that if things ever go really, really wrong, you are ready to handle whatever life throws your way.

 

 

Your Emergency Back-up plan

 

Any CPR instructor worth her salt will tell you that the most important step in saving someone is to prepare for an emergency before someone.  Know how to recognize the danger signs, learn the steps, and run through some practice drills.  There may not be time to get out the instruction manual when a person is turning blue, so it is a good idea to give it some thought now, when everyone is breathing just fine.  This same lesson holds true for financial protection. 

Financial CPR is about creating a strategy for what you will do if things go wrong.  It boils down to one question: What will you do in a financial emergency? 

Here are four steps to create  your own emergency back-up plan:

 

 

1.      Spot the vulnerabilities. 

 

It’s time to think about those places where you may be vulnerable.  If you are like most of us, you know those vulnerabilities are there--but you would rather think about something else.  Maybe you worry about your health, or maybe you worry about your job.  Now is the time to look those worries square in the face, and think about the actions you can take to make things better (and to worry a little less!). 

So, for example, suppose you worry that your job could disappear.  That may just be a fact of life, but there are things you can do now to prepare yourself.  Do a little online job hunting, and dust off your resume and send it out to a few places, just in case.  Or perhaps you are concerned about your parents’ health.  Now is a good time to talk with them about their wishes, and maybe help them get long-term care insurance.  Spot the vulnerabilities and think about them now when you have plenty of time to take steps to protect yourself.

If you see some real dangers lurking in your future, there is something else you can do now:  Don’t make it worse.  Maybe you can’t find a better job right now, but you also know that this isn’t a good time to take on a brand new car loan.  If your folks are getting along in age, this might not be the time for you to move.  We hope things will stay perfect, but life isn’t always so smooth.  So find the time to review the possibilities, so you can protect yourself—just in case. 

Jot your ideas down on a sheet of paper.  Include the possible vulnerabilities and your ideas for what you might do.  Writing it down will make it real. 

 

 

2.      Make a list of Wants you could cut.

 

Start with your Wants, which is always the easiest place to trim.  Ask yourself: If something went wrong, which Wants would I cut first?  The point here is not to get rid of the Wants spending right this minute.  Just the opposite; as long as you’re working and everyone is healthy, you should keep enjoying your Wants to the fullest.   Just be prepared, so that if the need ever arises, you’ll be ready to move fast. 

This is where all the hard work you put in to getting your money in balance pays off.  You’ve broken the credit card habit, and you’ve gotten really, really clear on what you need and what you can live without.  So, take a moment to think it through. What would you cut first?  What would you cut second?   For example, you might decide that at the first sign of trouble, you would start cooking every night and skip the trips to Taco Bell.  Or maybe you would cancel your cell phone, or get rid of cable TV. (Who needs 154 channels, anyway?)  Ultimately, if things ever got really tough, you would probably cut all of your Wants.  But for now, think of the cuts that hurt the least, so you’re ready to trim if the need ever arises. 

This is also a good time to make sure that you can make these cuts.  If you think you could live without your cell-phone, then make sure that you aren’t trapped into a two-year contract.  Likewise, find out if there is a penalty for canceling your satellite dish.  With a little preparation now, you’ll be able to respond lightning-quick if the need ever arises.    

 

 


3.      Make a list of Must-Haves you could cut.

 

The next step is to look for places where you could trim your Must-Haves IF you ever need to.  You are probably thinking, “Are these people crazy, there’s nowhere left to cut!”  But hold your horses; we’re not asking you to make more cuts.  We’re just asking you to think about the cuts you could make if you absolutely had to. 

It’s time for some creativity.  If things got tough and you couldn’t manage your Must-Haves, what steps might you take?  Could you move in with your parents—maybe just until you get back on your feet?  Could you sell the car and take the bus for a while?  Could you pull the kids out of preschool or after-school activities?  Could you rent out the house and move into an apartment?   We ask these questions for a very specific reason:  Sometimes decisions you make now can preserve options for the future.

Jessie Nowland is living proof.  Four years after buying her own little bungalow, she decided to remodel.  Her builder tried to talk her into getting rid of the second bedroom so she could make a single, larger master bedroom suite with double walk-in closets and a spa bath.  He sketched out pictures and urged her to “go for it.”  But Jessie hesitated, deciding to keep the two smaller bedrooms and add a second small bathroom instead.  Seven months after the renovations were complete (and long before they were paid off), Jessie took a hard fall at work.  Even with worker’s compensation, she was out of money in about five months,  and she was looking at least five more months of rehab before she could return to her job as a cardiac nurse.  So Jessie invited her mom to move in.  “It was a godsend.  Mom drove me around, did the shopping.  And she helped out with the mortgage, the utilities, that kind of thing.  If I had remodeled my house to fit only one person, this never would have worked.”  Think now about preserving your options if things go wrong.  You may end up keeping some flexibility that could be important later on.

Make a list of possible cuts you could make if you ever need to.  We’ve started the list with a few common answers; check those that apply to you.


 

Emergency Targets:  If an emergency struck, where could you cut your spending?

 

 

Wants

q  Restaurant meals

q  Cable TV

q  New clothes

q  Cell phone

q  ________________________________________

q  ________________________________________

q  ________________________________________

q  ________________________________________

Must-Haves

q  _______________________________________________

q  _______________________________________________

q  _______________________________________________

q  _______________________________________________

 

 

4.      Practice every year and before any major purchase

 

It is good to practice a CPR drill every year or so.  Do the same with your money.  Once a year, set aside an hour or so to think about what you would do if your finances took a tumble.  Pick a special day—the day before your birthday or January 1. (We had a friend who said she always did this on Halloween—the scariest day of the year!)

And then do a little planning.  Update your list of places where you might be vulnerable, and make sure you’ve done your best to address them.  You should also update your list of Emergency Targets, so you’re ready to cut your spending if you ever need to. 

Once your CPR drill is over, file away the papers and put the worries out of your mind, secure in the knowledge that you have planned ahead and done your best.  Then give yourself a treat.  You deserve it. 

And remember, this isn’t about walking around with a black cloud over your head.  This is about taking sensible, positive action when you have time to plan it out.  Think of yourself as an optimist with a parachute. 

 

 

What to do when bad things happen 

 

No time for the drill; this is a real emergency.  You’ve run through your Security Fund and money is getting tight.  What should you do?  We can’t promise that things won’t get tough, but we can give you some tools to help you stay calm, and to keep you in charge of your own future. 

 

 

1) Stay in control.  

 

Don’t panic.  This is important.  We once saw a man slump to the floor in an airport, his face rapidly turning purple and his eyes fluttering closed.  The woman closest to him shrieked loudly, “Help this man!” then bolted for the women’s room.  A few minutes later she came back looking wild-eyed and carrying a single paper towel.  Fortunately, other folks in the airport hadn’t panicked, and CPR was well underway by the time she came back. 

Panic can happen any time.  A pink slip may leave you pacing the floor all night.  A collection notice may leave you speechless.   That is when you need to repeat to yourself,  “No matter how bad things get, I always have options.”  But to weigh your options carefully, you will need a clear head.  Keep your wits about you, and don’t panic.

 

 

No matter what happens, you always have options.

 

 

First, you need to understand that when you are in financial trouble you are still in control.  Yes, creditors have rights.  But you have rights too.  More importantly, you are the one who earns the money.  And you have control over the bank account, the house and everything else in your name.  This means that you are the one who decides which creditors get paid, and you are the one who decides whether to sell something, to give it back, to work out a payment plan, or to file for bankruptcy.  These are your decisions, and you are still in the driver’s seat. 

So keep calm.  You may be forced to make some tough choices, but these are still your choices.  If you keep your head, you’ll get through this. 

 

 

2) React Quickly

 

The corollary to “Don’t panic” is “Move fast.”  When something goes wrong, you need to create a plan, and you need to do it quickly. (Which is why you practiced the Financial CPR drill at the front of this chapter).  Just like when someone starts choking, the time it takes to respond can make a huge difference. 

It may seem obvious that you need a quick response, but in fact, many people delay.  The greatest danger when you get into financial trouble is not bill collectors—although they can be the most annoying.  The greatest danger is misplaced optimism.  We’ve heard it over and over again: “I’m sure I can find another job right away.”  “Surely Tim will be feeling better soon.”  “My wife and I will patch things up after a little time apart."  Many job counselors tell people who have lost their jobs to keep up their lives just as before—hit the credit cards and keep everything “normal.”  Well, things aren’t normal.  The speed with which you react may make the difference between survival and collapse.

 

 

When you get in financial trouble, respond quickly.  

 

 

If a crisis comes your way, the first thing will be to stop as much spending as you can.  Go back to your CPR drill, and look at the list of cuts you decided you could make if you had to.  Now is the time to start cutting—fast.  When rumors of pink slips start flying around the office, that’s the time to eat dinner at home and cancel the cell phone. 

What’s the point of cutting your spending?  If you’ve lost your job, the answer is pretty obvious: Make sure you have enough to pay your Must-Haves.  But if the bad news is still just a rumor, that’s the time to fatten up your Security Fund a little more.  It’s also a good time to stop investing in your retirement fund or putting extra payments into the mortgage; you can resume just as soon as the crisis passes.  You already know this instinctively; after all, you wouldn’t open an IRA or go on a shopping spree the day after you lost your job.  But if you take the time to think about this now, you’ll be ready to react more quickly if the need ever arrives.

Give yourself a timeline.  Since you don’t really know when the crisis will end, you should create a schedule for yourself.  So, for example, you might decide that if you haven’t found a job within three months, it will be time to move to a smaller apartment and take a job waiting tables on the weekends while you continue to job search during the week.  The point here is to be proactive, so that you stay in charge of your life. 

 

 

3) Call your creditors.

 

If you are in trouble and you know you’ll miss a payment, get on the phone.  Sure, it may be embarrassing, but your creditors will be much more willing to work something out if you call them before they have to call you.  Explain what has happened—you’ve lost your job or a refrigerator fell on your foot—and tell them you want to make good.  Some creditors, such as student loan issuers and utility companies, have special provisions to accommodate people who are facing a serious illness or a job loss, so be sure to ask.  You are much less likely to get hammered with late fees and collection notices if you make the first call.  And if you think you may not be able to pay your rent or mortgage, be doubly sure to get in touch with the landlord or mortgage company; the last thing you need is the added worry that you may get kicked out of your home.

Ask your creditors if they will work out a repayment plan for you—perhaps just a token payment for a few months until you get back on your feet.  (Be sure to keep a record of whatever you agree on; you may need this later on.)  But remember this hard-and-fast rule:  Don’t agree to anything unless you are absolutely certain that you can meet your end of the bargain.  If you are out of work and you don’t yet have a regular job, just tell them what is wrong and that you’ll try to work out a plan as soon as you can.  Don’t commit to anything yet.  Be completely honest, and never make promises you can’t keep.

 

 

4) Pay the bills that matter most.

 

If things get really tight and you don’t have enough to cover all your expenses, then pay the most important bills first.  For most people, the home comes first, and then maybe the car or the health insurance policy.  Figure out your priorities.  Sure, you want to pay everything, but this is a little like deciding what to save in a fire.  Save the most important things first, then save what you can.  Don’t try to save everything at once, because it just may be too much to handle. 

 

 

When trouble strikes, decide which things you treasure most, and pay those bills first.

 

 

After her divorce, Antoinette Ameren was determined to keep everything the same for her two daughters—the house, the SUV, the ballet lessons.  She felt like her girls were bruised enough when their daddy left, and they shouldn’t have to pay any more.  Before long, she found herself choosing which bills to pay and which to put off another month. 

It was a call from a collection agent that finally shook Antoinette out of her fog.  The bill collector was really aggressive, calling her “a cheat” and “a stupid cow.”  She slammed down the phone, her hand trembling and her heart racing.  “I thought, is this where I’m headed?  People think they can treat me like this?”  And that was the moment she decided it was time for a change.  She put all her expenses on paper, and realized there just wasn’t enough to keep going the same way.  Her first priority was to own a home, so she sold the big house she had shared with her husband and bought a smaller place—then she let the rest go.  She sold the Ford Explorer and switched the girls to a tumbling class at the local YMCA.  Antoinette told us:

 

It took me seven months to find a decent full-time job.  And then my knee went out, and I had to get surgery, and that cost a lot.  But we’ve done all right.  I look at our little house—the girls and I have painted and stenciled every room, we even painted frogs in the utility room!… I think about how I could have waited [to move] and ended up in some cheap apartment in [a bad section of town].  I saved what I could, and I’m proud the girls and I are making it okay.

 

If you have one or two particularly noisy creditors, it may be tempting to send them some money just to get them to leave you alone.  This is a mistake.  You need to work out the payment plan that makes sense for you. 

It doesn’t matter who makes what demands or what the bill collectors threaten.  If serious trouble comes your way, you should be fighting for the things you care about, not trying to quiet down the most aggressive bill collector.

 

5) Borrow money if you absolutely have to--but do it as safely as possible

You have cut out the fun spending, you have drained your Security Fund, and there still isn’t enough.  What then? 

If you don’t have enough money to keep bread on the table, to get medical care and keep the lights on, then go ahead and borrow the money.  Go into debt—but do it carefully.  This is desperation borrowing, the kind you do when nothing else will let you live in safety and dignity. 

The first rule of desperation borrowing is to make absolutely certain that you are desperate.  Are there any ways for you to earn a little extra cash?  Is there still a little something in the piggy bank?  If you haven’t exhausted every possible reserve, if you aren’t spending money for something that is truly necessary, then don’t do it.  This borrowing will cost you big-time in the future, so break the glass and pull the alarm only when you are sure that there is no other option. 

The second rule is:  Safety is more important than interest rates.  A home equity loan or a car title loan may seem attractive, since the interest rate is lower and the advertisements are coming thick and fast.  But the last thing you should do when you get in trouble is put your treasures on the line.  After all, it will be tough enough to keep up with your mortgage and your car loan, so you shouldn’t make the payments even bigger when you are staring trouble right in the teeth! 

 

Safety is more important than interest rates.  If you need to take on debt, use a credit card instead of a home equity loan. 

 

What should you do?  Start by stringing out your payments.  Request a deferment on your student loans, and hold off on paying the cell phone, the dentist, the doctor, and other outstanding bills for anything besides your utilities, home, and car payment.  You may get some dings on your credit report and your cell phone may get shut off, but these creditors probably won’t charge you exorbitant interest (especially if you call ahead of time) and they won’t kick you out on the street. 

Next, take the lowest-interest credit card you can find, and charge the necessities.  Yes, credit cards are dangerous, and yes, we told you to cut up your cards.  But we also said that the cards are for emergencies, and this is an emergency.  Put the groceries on the MasterCard, and make the minimum payments as best you can.  The bad news is that you may pay more for this kind of debt than you would for a home equity loan (although not always, if you shop carefully).  But the good news is that you won’t risk losing the place where you live.  If push comes to shove, you can discharge your credit card, medical debt, and so forth by filing for bankruptcy. 

What about that money sitting in your retirement account?  Should you cash it out?  No!  The law puts special protection on your retirement accounts so your creditors can’t get to that money.  Those protections are strong for a very good reason—you will need that money later on, maybe more than you need it today.  Moreover, cashing out your retirement account is the most expensive kind of borrowing, since you get hit with extra tax penalties.  So don’t cash out your retirement account, and don’t borrow against it, either.  Hold onto this money for your future. 

          And beware of the debt peddlers.  When you get in financial trouble, the offers come flying for all sorts of new debt you can take on.  It may sound crazy, but bill collectors routinely call to offer more debt in the same breath they demand payment on your old bills.  They try to convince you that taking out a consolidation loan will somehow solve your problems.  Hospitals and other medical providers increasingly collect their fees by trying to steer you to high-interest loans so be especially leery of their offers.  When you owe someone money and they are offering to put you in touch with a finance company or to give you more money, run the other way—fast!  

Collection agents can be really persistent about pushing these offers.  We knew a man in Tennessee who got behind on his mortgage after he had a heart attack.  When the mortgage company called, he figured they would give him a hard time about the missed payments, telling him he had to pay up or else.  But they didn’t even ask him for a single dollar.  In fact, they just wanted him to take on a second mortgage.  Wisely, the man refused to put his home under even greater risk.  But the mortgage company wouldn’t take no for an answer.  They called day after day, rousing the man from his sick bed.  When he finally told them not to call back any more, the company started pestering his wife, calling her at the office to tell her that she should “make him sign”, since she “deserves a break.”  Be prepared to say no, and to keep saying it.  And don’t be surprised if a bill collector tries to put a wedge between you and your spouse.  When it comes to collecting money, nothing is sacred.  Just hang up the phone, and make a pact with your spouse to do the same.

 

 

6)  Negotiate like crazy. 

 

Earlier we suggested that you call your landlord or your credit card company if you were going to miss a payment.  Now it is time to think about what happens when if you fall way behind on all your bills, and there doesn’t seem to be any quick way out of the hole.

If you are behind on your bills and your credit score is lower than room temperature, then there is no point in trying to hide it.  Your creditors already know.  Which means they also know also know that you may be thinking about filing for bankruptcy—a situation where they might not get a dime.  There is a good chance that if you are in that much trouble with your bills, at least some of your creditors will be willing to negotiate. 

          Try calling your creditors to see if they are willing to deal.  The key is to be firm: Tell your creditor you simply do not have the money to pay in full.  Come clean with your creditors, telling them what went wrong and how you’ve turned the corner.  Tell them you hope to avoid bankruptcy, but only if they’re willing to work with you.  If the creditor agrees to deal, make very certain that if you pay, they will erase the debt completely.  Get it in writing.  Some creditors may offer to put you on a monthly payment plan with no intention of ever wiping out the debt.  If you get that kind of offer, just walk away.  Remember, you don’t want to spread out your payments; you want to get rid of your debt completely.

If you are on the verge of bankruptcy, you may be able to negotiate yourself back off the cliff by getting all (or most) of your creditors to take less.  But be realistic: Don’t agree to a payment plan that you can’t afford, and don’t expect miracles.  Some creditors are not reasonable, and some are not even polite.  So if you run into a brick wall, don’t keep banging your head against it.  Pick up the phone and call a bankruptcy attorney, comforted by the knowledge that you’ve done your best. 

 

 

7) If push comes to shove, call a bankruptcy attorney. 

 

          We know it hurts to think about it, but at some point bankruptcy may be the right choice.  More than a million and a half families file for bankruptcy every year, and nearly every one of them would tell you that going bankrupt was one of the lowest points in their lives.  Even so, bankruptcy can be the best step to get you back on the right track.  We’ll talk about the ins and outs of bankruptcy toward the end of this chapter.  

 

 

The Human Side to Money Troubles

 

When you get in financial trouble, your wallet isn’t the only thing that suffers.  Look out for yourself, and look out for your loved ones.

 

 

Be kind to the people you love.   

 

Financial trouble is one of the most stressful things in life, right up there with divorce and the death of a loved one.  So no matter how frightened or exhausted or frustrated you get, you need to follow a basic rule:  Be kind to the people you love.

That starts with being honest.  Be honest with your mate, and be honest with your kids.  Kids are a lot smarter than we give them credit for, and they know when Mom and Dad are worried.  But they have active imaginations, which means they can dream up something a lot worse than whatever is really going wrong.  When Lupe and Jack Randall finally sat down with their nine-year-old son to explain that they needed to cut expenses because Lupe had lost her job, the boy asked solemnly, “Will I be living with Dad or with Mom?”  Lupe and Jack were stunned by the question; divorce wasn’t anywhere on the radar screen.  But the boy knew something was wrong, and in his world, the worst that he could think of was divorce.  When they reassured him that they were all in this together, he cried so hard that Lupe and Jack could barely hold it together. So come clean with your kids.  They deserve it.

And be kind to your mate.  Consider this: If your family is like most, your marriage is more vulnerable when you get in financial trouble than at any other time in your life.  Financial calamity is one of the most frustrating, humiliating, and exhausting experiences a couple can go through.  Husbands may feel shamed by their inability to provide, and wives may feel overburdened by the demands of bill collectors, bosses, and children. And if your boss makes you furious or a bill collector calls you ugly names, you may not be able to spit back.  Your mate is always nearby, however, and it can be tempting to lash out in that direction instead.  Be kind. You are both under enormous strain right now, and taking it out on each other will only make things worse.

Your spouse can be your greatest source of comfort.  And you should be the same for your spouse.  So make an effort.  Do some nice things together.  Take a walk.  Sneak away for a Big Mac and a Coke.  Turn the lights down low and dance to your favorite CD.  Promise yourself, that at least once a day, you will have a conversation that isn’t about money.  Talk about the weather or something funny the dog did.  Anything but money.  Remember that financial difficulty should not consume your life or your relationship.

And don’t develop 20/20 hindsight.  When you get in financial trouble, it is tempting to beat up on yourself (and your mate) about the smarter choices you might have made.  Maybe you shouldn’t have bought a new car, maybe your mate should have applied to more jobs, maybe you should never have tried sky-diving.  That 20/20 hindsight can keep you up all night, endlessly reliving past mistakes.  In the end, second-guessing leaves you with nothing but bleary eyes and a sore heart.  So get over the past mistakes, and focus on making smart decisions now.  Go easy on yourself and the people you love.

 

 

Never trust a bill collector. 

 

If your financial problems get really bad, you may find yourself at the center of a lot of attention—phone calls, letters, even visits to your home—all from the people you least want to hear from, your bill collectors. 

Bill collectors have a lot of different approaches.  Some are friendly and sympathetic, some are cold and clinical, and some are downright scary.  No matter what tactic they use, they have only one goal.  They want to get paid.  Period.  You can make deals with them if you have to, but don’t forget that they are not on your side. So don’t ever, ever take their advice. 

 

 

Bill collectors have only one goal: To get your money.

Don’t ever take their advice.

         

 

If you have never been late on your bills, you may be shocked by just how nasty bill collectors can be.  We’ve heard some stories that would straighten your hair and curl your toes.  Bill collectors may call late at night, on weekends, and even on Christmas morning.  They may call you at work, and they may try to embarrass you by pestering your co-workers or your extended family.  Bill collectors will threaten to garnish wages, freeze checking accounts, show up with the sheriff at your house, or even have you arrested.  We were told of one debt collector who actually threatened to repossess a woman’s mattress and set it on fire in the middle of the street!  If you get these kinds of threats, ask for a written letter outlining what action the creditor plans to take.  If the bill collector won’t write the threat down, then he is probably just blowing smoke—and he knows that if he puts it in writing his company could get sued.  So get it in writing.   

Many of the practices bill collectors routinely use to intimidate people are outlawed by the Fair Debt Collection Practices Act, and you have a right to defend yourself.  For example, the law says that debt collectors are not allowed to call before 8 am or after 9 pm, and they’re not allowed to contact you at work if you tell them your employer disapproves.  Most creditors count on the fact that people don’t know their rights, and many people who owe money are too ashamed to ask for help.  You can do better.  Read up on your rights at www.ftc.gov, or call the hotline at 877-FTC-HELP.  Don’t become another victim. 

          If you have children, you need to be doubly careful about bill collectors.  This may sound shocking, but it’s true:  There are bill collectors who routinely hassle little kids.  Many companies make a practice of starting their collection calls in the mid-afternoon, when Mom and Dad are still at work and the kids are home alone.  We have talked with people whose children—some as young as nine or ten years old—were told that Mommy would go to jail if she doesn’t pay the bill collector.  “Just tell her to pay up, and we won’t call the police.”  Never mind that the threats were untrue; the bill collector figured that if he scared the kids enough, Mom would borrow the money from someone else and make a payment just to make the calls stop.  So protect your kids, and never, ever let them answer the phone when they might be talking to a bill collector.

 


Stay Away from Credit Counselors

 

          Remember what we said back in Step Five:  Credit counselors sound oh-so-friendly, but most are just slick operators who just want to wring every last penny out of you—then toss you on the credit trash pile when they finally decide that they can’t get any more.

          Until the industry is regulated, just stay away.  Even some of the non-profit counselors have been exposed as shams.  Right now, you can’t tell the dolphins from the sharks, so stay out of the water. 

 

 

NOTE:  This chapter was written before the 2005 Amendments to the Bankruptcy Code were adopted.  Those amendments will require you to go to a credit counselor before you can file bankruptcy.  But don’t go find a credit counselor on your own.  If you need bankruptcy, see an attorney and let the attorney direct you to a credit counselor.  The sharks are still out there.

 

 

 

Don’t hide in shame.         

 

If financial troubles come your way, you may find yourself feeling isolated, overcome with feelings of embarrassment and shame.  In a society where people speak publicly about everything from their struggles with alcoholism to their efforts to get pregnant, financial trouble remains the last great taboo.  Ordina