THE BAD CREDIT BLUES PART 1

Getting divorced and losing your job are two major life events that can wreak havoc with a person's finances and complicate making sound decisions. I know from personal experience because the same thing happened to me the year I turned 40. Your first priority is not worrying about the debt collectors but focusing on getting a new job. The credit card accounts have already been charged off by the original creditor and most likely sold to collectors. At this point, your credit will not get much worse unless you end up filing bankruptcy.

A bankruptcy can complicate the employment process and may keep you out of some positions that require licenses, security clearances or good credit. Besides, with only unemployment benefits, you have no money to pay. Once you are gainfully re-employed and can make arrangements to pay what you owe, your credit will improve with time.

Stopping the harassing phone calls is another story. When speaking to debt collectors, my suggestion is to remain calm and polite even when they are far from being polite. This is much easier said than done and takes some practice. Given the fact that you are currently unemployed and barely able to cover your essential bills with your unemployment benefits, you have no money to pay the collectors calling about your credit card debt. You need to let the collection agency know in a civilized conversation that you have no money to pay right now due to unemployment. To keep in control of the conversation, I suggest that you write out a script or at least the points you want to cover in your call so you don't get off track.