A lot of us are quite scared of communicating with creditors. That is probably because we have a strong sense of responsibility about our debt. We are ashamed to talk to them especially when we know that we had been late on our payments.

Defaulting on payments does not necessarily mean that you had been reckless with your spending. Sometimes, you are forced to use your debt payment fund for more important expenses like those for your health.

Being sick is a valid reason to be late on your debt but that does not exempt you from the late penalties and other charges associated with it. However, you can work on making things less destructive. This is an unexpected circumstance that nobody wanted - in the same way that some people do not want to miss payments because they got laid off from work.

So if you find yourself intentionally defaulting on payments because of your sickness, here are some of the things that you can do.

First of all, you need to call your creditors. Despite how you view them, creditors appreciate sincerity in their clients. Just pick up the phone or send them a letter to let them know that a sickness is causing you financial difficulties. This crisis is making you miss your payments. Explain the situation and express your sincere intent on paying back what you owe. Acknowledge that the crisis does not take away your responsibility for the debt but at the same time, let them know that you simply cannot afford your current debt payment requirements.

Do not be afraid to tell them the details of your illness. Be prepared to show a document from your physician to prove your claims - especially any future medical treatments that will indicate how long you have to pay medical expenses that you are currently financing.

Creditors usually have programs in place that will place you in a special payment plan that you can afford. Or, you can opt for a third party debt relief service life debt management or debt settlement. All of these are effective in getting you a lower payment plan so you can pay off both medical expenses and your current debts.

Create a budget for your finances so you know how much you can afford to keep paying your debts. Be honest with yourself and never promise to pay more than what you can really spend. Defaulting on the new payment plan may get the ire of your creditor so try not to disappoint them. Make sure they understand that your medical expenses will come in first.

When you have ironed out your plan for your debts, you want to keep from taking in more debt. In this particular case, you don’t want to accumulate medical debts. Research on charitable organizations and government programs that can help people with your specific medical condition. You can also approach local churches to see if they can provide you with financial or other forms of support to help you maximize your limited finances.

In case the creditors do not want to give you leniency, you may want to look for a debt relief company who can assist you in negotiating your debts. Your best option is to have your balance reduced so that you can get out of debt faster.

Credit cards can be difficult to control. In most cases, people who are in debt usually have these plastic cards as one of the culprits. These cards were created to entice us to buy things and avail of professional services that are beyond our current financial capabilities. Even when you cannot afford it at the moment, you can always swipe your card to get what you want. While the whole concept obviously does not promote the best financial habit, there are ways for card holders to stay away from credit card debt.

First and foremost, if you have existing credit card debt, you need to pay them off. There are debt relief options that you can use like debt consolidation and debt settlement. Choose your option based on how much you can afford to pay towards your credit card debt. Ignoring your debt is a very bad idea because it is notorious for accumulating very easily because of the high interest rate and the finance charges. Work on your debts and pay off what you owe.

When your current credit card debt is paid off, you don’t really have to cut them all of. If you wish to get rid of the high interest rate cards, you can do so but if you know how to use your cards properly, the interest rate will not matter at all.

After using a credit card to pay for something, you usually have a grace period between the date of purchase and the due date of the billing statement right after. If you pay for the purchase in full within this time frame, you don’t have to worry about the interest rate. That means, you really just pay for what you got - no additional fees. This habit will not only help you keep payments to a minimum, it will also show that you are a responsible credit holder.

Another way to use your credit card wisely is to limit its use. Ideally, you should only use your card for emergencies. If that is the case, make sure you define just exactly what an emergency is. Will it be strictly for health reasons only? Try not to use it for basic expenses because that will be very hard to control.

When you use your cards double check the print out before signing. Encircle the amount to check if it is the right amount. Keep your copy so you can double check the billing statement once it comes in. If there are any discrepancies from what you remember, investigate and report it to the credit card company.

If you have to use it for expensive purchases, set up a payment plan to make sure that your balance will not grow further. Keep that plan as short as possible. Also, keep the price from going more than 30% of your card’s limit.

Hopefully, these rules will help you get the best rewards for your credit cards. It is very important to practice smart spending habits and try not to be deluded into thinking that you can pay for things that are actually more than what you can actually afford.

Taking care of one’s finances is all about making the right choices. And to make the right decisions, you need to know what is good for your finances and what is destructive.

Unfortunately, looking at how society have evolved, the norm may not necessarily be supportive of proper financial management. There are a couple of lies that you may be telling yourself that could lead to your financial ruin. Even if everyone you know is practicing it, that does not mean it is correct. So here is a list of wrong assumptions that you may be telling yourself. See if these apply so that you can correct them and save yourself from making bad financial decisions.

First of all, some people think that saving for retirement can be put off for later. There is no such thing as saving too early. In fact, the earlier you start, the more secure future you will have. You don’t even have to think of it as your retirement money. Think of it as your emergency or reserve fund. This will literally save you from a lot of future disasters. When an emergency expense is needed, you don’t have to borrow money or rely on your credit card to help get you out of a tight spot. You can dip into your savings and save yourself from all the interest rate and overall stress associated with debt.

Another lie that is quite common for people is basing their purchases on what they can afford. For instance, just because you can afford to buy a luxury car, it doesn’t mean you have to. Even if you qualify for a million dollar home, it does not mean you should buy one. If you really want to make wiser spending choices, make sure you only buy based on what you need - not how much you can afford. If you only need something that costs less, then put the extra money on your savings. That is the wisest move that you can make.

Society has put so much importance on material things. Although it can really help make your life convenient, all of that will be overpowered by the debt payments that you have to keep up with. If you want to buy something expensive and is clearly just to appease your ego, then make sure you pay for it in cash. Be more confident about yourself and remove the notion that your money will define your success. You may be surprised that some of the self made millionaires in the country have simple needs.

You don’t really have to live a frugal lifestyle in order to say that you are making the right financial decisions. You just have to make sure that your spending is not ruled by expensive price tags. Keep in mind what you just need and stick to that. You do not have to possess the priciest items to prove your self worth. Live within your means and grow your savings - that is how you can be deemed as a financial success.