By Bud Wassell, Director, Solutions EAP

Prioritize Your Debts – This is a very important step according to Mitch Allen, author of A Survival Guide to Debt. He says the most important debt you have which should be paid first is your house and then your car, these are secured debts that if you don’t pay you will lose something. Then you have student loans and child support that you can get into serious trouble for, followed by credit card debts which are unsecured.

Many homeowners who are delinquent on their mortgage payments are not aware of the services their lenders offer when they’re in trouble.

Under the government's Making Home Affordable Program there are a number of options available for homeowners who are in trouble and behind in their payments and also for those who are on the brink of falling behind. They also have options for those who do not qualify for traditional refinancing because their equity has disappeared due to declining home values. It’s not possible to go into all the options and eligibility requirements in this article so go http://makinghomeaffordable.gov/ or call 888-995-HOPE (4673) or TTY 877-304-9709.

All of the mortgage, credit card and car loan companies have programs available to consumers that are going through financial hardship. So call your lender to find out which hardship programs they participate in and what their procedures are. Again, the message here is “Don’t Wait”, they would much rather talk directly to you and try to work out a solution that works for all involved.

Next we’ll look specific steps you can take to address credit card debt.

If you would like to talk about this or any other problem or concern, please call Solutions Employee
Assistance Program at 1-800-526-3485 or www.solutions-eap.com<http://www.solutions-eap.com>

George "Bud" Wassell, M.S., LPC, CEAP
Director, Solutions EAP
213 Court Street
Middletown, CT 06457
800-526-3485
fax: 860-704-6221
http://www.solutions-eap.com