The perfect example of an almost universal mistake is the desire to sell assets at the first sign of trouble in order to stay off creditors. Avoid the inclination to sell all your assets to pay your bills UNLESS it is sufficient to pay off a large enough portion of them to make the remainder manageable. Do not sell your assets to buy time unless you are CERTAIN you will have enough funds at the end of that period to pay your bills when due. Otherwise, you will find yourself in the same position 30-90 days from now, only then without assets. Later, if worse comes to worse, you may negotiate for a full settlement with a partial payment, at which point you will need to liquidate assets. Save them for now.

Unfortunately, during a financial crisis there are a very limited number of places to turn for help. Those who are most qualified to help want what you have the least of (money) in return for their help. That makes a resource such as this all the more necessary. But, in addition to the information that you learn here, you may need to know your legal options for a specific set of circumstances. Don't hesitate to get legal council. A knowledgeable attorney can quickly define your options on specific points in question such as major assets or laws specific to your state. If you don't know an attorney, ask a friend to refer one. You don't even have to explain why.

If you don't have one in mind, you can look in your Yellow Pages under Attorney Referral Services. If you can't afford an attorney, they may even be able to direct you to low-cost or even free legal advice. Most large metropolitan areas have legal aid societies that offer free pro bono legal advice to those who qualify. Due to their low profile, few people are aware that free legal aid exists. The peace of mind that comes from just knowing what your legal options are makes the effort to find such help very worthwhile. Legal aid societies are nonprofit organizations and thus will be registered with your Secretary of State. You may first look in your Yellow Pages under:

Legal Aid Society
Legal Services Organization
Attorney Referral Services
or contact your local bar association

If you have closely read the information sent to you by one of the credit bureaus, you may have read about the Consumer Credit Counseling Service (CCCS). Here is what Equifax, one of the 3 major bureaus, tells you in their literature:

"The CCCS is a nonprofit organization that offers free or low-cost financial counseling to help people solve their financial problems. CCCS can help you analyze your situation and work with you to develop solutions. There are several hundred CCCS offices throughout the country. Call 1-800-388-2227 to get the telephone number of the office nearest you."

Here is what they don't tell you:

The CCCS is actually working for your creditors! Yes, a CCCS representative will counsel you and negotiate a payment plan with your creditor, but the majority of their funding comes from the commission that the creditor will pay them for working out that payment arrangement. Most of your creditors already have a negotiating protocol on file with the CCCS, and each creditor is different.

A notation will be made on your credit report by your creditor explaining that your account is being handled by CCCS. This is not positive in the eyes of future prospective lenders.

The CCCS will not work with severe cases, often suggesting that they file bankruptcy.

The CCCS is not equipped to councel you in depth with the "street-smart," practical advice such as is in this report. Nonprofit or not, the individual owners of these independent offices do make money. And they don't make money unless they work out an arrangement with your creditors. As a result, if they can't rearrange your payment schedule with relative ease, then they will turn you away and move on to the next.

Does this mean that the CCCS is a bad thing? Not necessarily. It's a good idea. The concept of having someone there to help those without money to pay for their service is great and noble. But the problem comes with the fundamental economic principle, "There really is nothing for free." Your token payment isn't near enough keep their doors open. So, if you're not paying for the phone, electricity, payroll and such, then who is? Obviously, your creditors. Now, if your creditors are the ones paying to keep their doors open, whose interest are they most likely to guard first?

They are somewhat deceptive in the way they present themselves. However, that doesn't mean that they can't help you work out a budget and negotiate a solution that you are happy with. Often, they do just that. You need to evaluate their service in the light of this information. Don't just welcome whatever someone suggests you do with open arms. Find out exactly what they can do for you, then compare and possibly combine that with your own ideas and solutions from utilizing this material.