You rely on income from working overtime or a second job to pay bills. First, find out where your money is going. If you keep track of your expenses for one month, you may find that those items you purchase without much thought add up to hundreds of dollars every year. Examine your expenses to see where you can cut spending to free up more money for your monthly payments. In some cases you may need to approach one or more of your lenders and try to either reduce or defer monthly payments without having to pay a penalty.
Financial counseling is also available locally.
Check the phone book for a local Consumer Credit Counseling Service. It's best not to wait too long to get help, Cude said. If you continue to miss payments, lenders will be forced to repossess the item or even to obtain a court order to garnish your wages. Lenders will also report your delinquent payments to a credit bureau which will damage your credit rating. Once you get your expenses under control, you can begin saving money for unexpected expenses or for luxuries that you cannot afford today.