Reply #22: Downsize, simplify, and negotiate.

[Lisa0825]

First thing I'd do is see about getting a student loan deferment.

Can you cancel the cable and the high speed internet access? (Just for example)

Try tracking every dime you spend as a family and see what can be trimmed. I cut $100 a month off my spending just by making a couple painless changes in routines. For example, I reduced the number of times I buy lunch to once a week from 2-3 times a week. That saved me about $50 a month alone.

Next, negotiate with your creditors. Before doing so, check these two resources:

http://www.ArtofCredit.com
http://www.creditinfocenter.com

Also, there are lots of books out there on getting finances in order. Go to a library or used book store, and pick up a few books.

DO NOT go with credit counseling services, however. That'll look worse than bankruptcy on your credit report. And do NOT negotiate any payoffs until you read the info at those sites. You need to make sure you negotiate properly so that they will not leave anything negative on your report.