Budget Series - Pt 5: How to Get to Your Goal Sooner

RECAP

You should have created your existing budget.  You should have an IDEAL budget that tells you where you want to be ultimately.  You are more sensitive on how you are spending.  You are now in the more boring phase of the day-to-day.  However, do not be disheartened looking at the large credit card debt and wonder - when will I ever pay that off.

INTERIM CREATIVE MANAGEMENT

Now that your financial infrastructure is set up, we can do some creative management.  If you have been late in paying your credit card, figure out why.  Is it because you get paid after the due date?  If so, contact the credit card company and ask them if they can move the payment date.  If the person you talk to says no, ask to speak to his/her supervisor.  Find someone who is willing to help you and do not stop asking until someone is willing to work with you. 

In my experience, what customer service person you get really makes a difference.  If I get someone who is totally stubborn, I thank them and hang up.  Then, I call again.  When I am certain that no first level customer service person can assist me, I ask for the next person in the food chain.  This is because the person at the next level will most likely have more authority to make things happen.

Bankruptcy Risk
Now, if you find that no customer service person is able or willing to help you, there is something else you may do but I cannot recommend it as I am not sure of its impact.  What may grease the wheels of cooperation is suggesting (only if it is true) that you are in over your head and that you are a bankruptcy risk.  You see, if you file bankruptcy properly the court may discharge all of your existing debts.  So, for the credit card company that has the possibility of never seeing another dime from you and not only losing out on the interest and fees but also the original amount they advanced, doing you that little favor of changing the due date seems reasonable. 

Also, ask if you can get a discount on the interest rate.  Remember, any discount on the interest rate will mean that more of your payment will go towards paying down the balance.  Typically, low interest rates are given to those with good credit and those who have a history of late payments will be assessed a penalty rate.  However, they may be willing to reduce their rate if they think you are

Hardship
Even if you are not contemplating bankruptcy, if you are suffering some form of hardship, do not be shy about letting the customer service person know.  The company may actually have a "hardship" exception which permit the customer service person to do more than they would otherwise be allowed to do.  Examples of your typical hardship is - deaths, divorce, job loss, etc. 

Other examples of hardship (which is not really a hardship but is a stressor nonetheless): planning a wedding (I've used this one to get about a $100 in fees reversed -- "ahhh!! so stressed about the wedding planning and I am so overwhelmed that I was not on top of my accounts.  I am so sorry, please have compassion."), new births, kid problems, school problems, husband/boyfriend/girlfriend problem, etc.

The point under "other examples of hardship" is that when you talk to a customer service person, remember that they are human beings and face the same challenges you do or know someone who does.  You are connecting with them at a human level, not the corporate mega-billion dollar level (which is their employer).  These individuals have more in common with you than they have with their employer.  Therefore, if you can connect with them at that human level, they will be your best advocates in looking through their employer's system to help you.  I do not believe this is disloyal for them.  In fact, I think this is customer service at its best.  The employee is working within the corporate structure to provide as much "service" as possible to the customer creating tremendous good will and also helping their employer by ensuring that the customer will continue to pay their bill.

In conclusion, reset your financial default, reign-in your spending, put yourself on a budget, set your goals, implement interim creative management to get to your goals sooner, then set new goals until you ultimately reach your IDEAL budget.

Good luck.