Down and Out in Bush Country

Have you ever found yourself in a sitatuation where you are "financially embarrassed?" You know, you have bills up the yang-yang and you have to search the couch cushions and between seat cracks in the car for change to buy 1/2 gallon of gas? You have trouble sleeping at night, knowing that you haven't paid the rent and having no idea when you can? You can positively state, without reservation, that you are officially and unequivocally - PO'? (That's worse than 'poor.')

I was talking to a guy at Sams' Club the other day and he echoed the sentiments of many a folk, I believe. He said he was just on the brink of homelessness. This guy is not lazy, mind you. He does some kind of construction work, but because of the price of fuel, jobs are few and far between. He moved three times in the last year (different states) following work. Right now, he said he has a project, but once it ends, nothing else is lined up, and his savings are gone. Our conversation then moved to the why's and wherefore's, and as you can probably guess, George Bush was mentioned, and not in a positive light; but that's a whole 'nother subject.

Unfortunately, even in the worst of circumstances, one's bills still have to be paid. Living in todays' Bush world is not a piece of cake, is it? People are getting desperate for answers to their financial woes, and that's where those friendly debt consolidation people come in! Also known as "debt negotiation" and "debt settlement" companies, they have one purpose, and that is to serve you, counsel you, and ultimately make your debt go away, painlessly and easily! WHAT COULD BE BETTER?

Actually, a lot of things. Truth is, debt consolidation is often a trap. These companies work for your creditors and on their behalf. Although they tout themselves as "non-profit," they do charge service fees and often skim these fees right off the top of your monthly payments. If you are considering the debt consolidation route, first learn all you can about it and be fully aware of the dangers. The fact is that what they do for you, you can often do for yourself as far as negotiating lower interest rates and payments with your creditors! Another option is a low-interest home-equity loan that will allow you to pay off your debts. Of course, you have to be a home owner to do this, so it may not be a option for you. Your home becomes collateral on the loan, so, with the obvious tax and payment advantages also comes risk, so be careful.

When in dire straits, people start looking for ways to trim their expenses. One item that is often scrutinized is insurance, and auto insurance is a good place to start. Obviously I don't mean to get rid of it (unless you're looking for an easy way to get an expensive ticket). Just take a look at your rates and do a little car insurance comparison shopping. You can almost always find better rates and already you'll be on your way to better financial health.

For added protection, CarInsurance.com can even help you with a new product called "temporary comprehensive coverage," or a short term policy, which can save you money as well. How? You can buy insurance for temporary situations such as moving a car from seller to buyer, taking a vacation with the expectation of sharing the driving, or lending (or borrowing) a car. That way, you don't have to buy a full insurance policy, and you eliminate the financial risks of not having any coverage at all.

If all else fails in your struggle to survive financially, bankrutcy may be your best option. For some, this is akin to death; but brighten up! Although drastic and certainly a last resort solution, bankruptcy is not the end of the world. It can stop those irritating dinner hour phone calls (thank goodness for caller ID!) and may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs and also let you keep most of your stuff. Best of all, you'll get a little more sleep at night and a nice, fresh start.