Your plan may be that you make smaller payments for a period of time. Although this may increase the total amount of your debt, it will help ease the burden of a decreased income. Most importantly, do not ignore bills and past due notices. Fears caused by uncertainty and avoidance are always worse than facing the facts and following a plan to take control. Change your lifestyle.
Studies show families respond to reduced income by cutting their spending.
Many families reduce spending for items such as vacations, eating out, and home furnishings first. Then, if the reduced income continues, many families report spending less for basic needs including food, shelter, transportation, and medical care. The studies found that families who quickly made changes in their spending habits were the most satisfied with how they were managing. Families who did not make changes felt more out of control and more dissatisfied. Look for ways you and your family can use time, energy, talents, and knowledge to reduce expenses.