Step 3. Get Current

Ok, you've taken the time to get things more organized than they were.  You know how much money is coming in, and roughly how much money needs to go out.  You've got the big picture in front of you, so now it's time to start to dig in a little.  Now it's time to get much more detailed and current with what's going on today.  Make another pass through the bills, this time I want you to simply sort everything by due date.  Anything that is past due should be put into a separate pile because we're going to have to deal with those first.  

Here's what I suggest you do with the past due bills.  First of all, run a quick total on the amounts past due so that you know what you are up against.  Let's say you've got three past due bills and when you total them the amount comes up to roughly $500.00.  Let's also assume that you really only feel like you have $300.00 to put towards them without jeopardizing the current bills that are sitting there in another pile in front of you.  You have a couple of choices now.  You could pay the entire $500 that is past due, and then let something that is current slide until next month.  My guess is, if you do this, all you'll accomplish is to drag out the stress and worry that you are already experiencing. 

Another option is to pick up the phone, contact each of the creditors that is past due, and explain the situation to them and ask for their help.  That's right, I said ask for their help!  Be honest with them, explain the situation and ask them if there is anything that can be done to help you work yourself out of this situation.  In most cases, a creditor stands to gain much more by working with you in a situation like this than they do by letting your account continue to go further and further past due.  You may find that they'll let you pay some portion of the past due balance, along with the current balance, and work it out this way until you get fully current again.  Now I cannot stress this enough, if a creditor works out a plan that you both agree to, you must do everything you can to follow that plan and make the payments you agreed to.  If the creditor gives a little to work with you, then you need to make sure you're holding up your end of the bargain as well.  As long as you do that, you'll find them to be an ally in your quest to get your finances under control.  If you don't, you'd better be prepared to have them as an adversary.

Once you've dealt with the past due bills, in whatever way you can, then you can turn to the pending and current bills and start to work your way through them normally.  Now this process you've gone through so far is the very least you should be doing to keep your finances under control.  But all you've done so far is begin to get your current situation under control.  So far, you're not really working on any kind of financial plan, you're simply reacting to the current situation.  That's ok, it's a fine start, and you should congratulate yourself for getting through it, especially if it's been stressful and intimidating for you.  But there's more you can do, and now we're going to get to the part where you're going to start living again!  Now we're going to start building a financial plan for your future.  And we're going to do all we can to make sure it's a bright future.