Evaluate wants versus needs to reduce debt

Are you facing a bucketload of debt? You aren't alone. CNN Money reports that the average consumers faced a debt load of $210,236 in 2011. That is a huge figure by the standards of most people. However, living with this much debt comes at a cost that can't be measured by dollars alone. The true cost of living under a financial burden is more than dollars and sense.

The excerpt below is the story of one person whose family is clawing their way out from under a pile of bills. It first appeared on the Yahoo Contributor Network and is republished here with permission...

Writing online at Bubblews for extra money

I have been writing online at Bubblews for extra money for a few months now. It's proven to be a winner for me. As I come to terms with a pay cut for 2014, the site will probably become more important.

A big part of why I like the site (other than making money) is that it's a cross between social media and a blog. Not having to come up with a ton of deep articles on a daily basis is a big help. Plus, you only have to write 400 characters in a post.

On Bubblews, you earn for every post, page view, like, dislike and social media share. The minimum payout is $25 and they'll send the money by Pay Pal, check or other methods.

You can find out more about Bubblews at this link.

One warning. The rules are few and very easy to follow but if you break one, then you don't get your redemption. Some people fuss about this but I have been paid on time, every time and just submitted for my 17th redemption since about mid- June. I registered earlier with the site but didn't do anything with it for awhile.


Writing online doesn't work for everyone but it helps me. Don't worry. It doesn't cost anything to sign up. This is a revenue sharing site. You get half of what they get on your articles. It's legitimate and is helping me pay my bills. Want to try Bubblews? Maybe it will help you too?

By the way, if you sign up via one of these links, I do get a referral payment of  20 cents. That may not be enough to sneeze at but I wanted you to know about it. The system won't tell me if you've registered so be sure to connect with me there so I can help promote your work.

Unhappy update from the backsliding corner

Wow, does time fly or what? I just realized that it's been almost two months since an update was posted. We are still plugging away at our debt but we have hit a couple of bumps in the road. One of those bumps is my car.

The cost to rework most of what is under the hood ran higher than expected.

Will medical bills end my plan to get out of debt

The calendar has only clicked off 17 days but so far it's been a medical year. My visit to the emergency department rolled into surgery just before midnight on New Years Eve. My daughter hit the same hospital ER before I was discharged. We both made trips to the pharmacy. Then, most of the members of our household caught the stomach flu.

Our medical bills are racking up this month. This doesn't include other tests, follow up visits and a regularly scheduled visit with my regular doctor. Our new insurance plan kicked in on January 1, so I'm still checking out coverage.

Being sick is expensive. Everyone knows that expensive care can bankrupt a family. Two major questions are rattling around in my brain. The first is trying to figure out what the insurance will cover and what it won't. The next question is in wondering if medical bills will end my plan to get out of debt.

Bills will be arriving soon. Only then will we be able to gauge what the impact going to be. If anything ends our carefully laid plans, then this will be it. Our highest hopes are that the medical bills will be manageable. Right now we're bracing for the worst but hoping for the best.

Opening up room in our budget may be a huge part in handling the medical expenses. We have had success with preplanning and using daily deal sites in other areas of our plan to get out of debt.  I'm planning on putting those same skills to work for us now. My theory is that it can't hurt.

Getting help with bills

People who are drowning in debt sometimes need help with bill. Utilities, rent and other major expenses come due whether you have a job or not. Being in a bad financial position can happen for lots of reasons. Every email I get confirms that bad debts can happen to good people. Illness, the economy, fire, natural disaster or an accident can each put a family in jeopardy.

When you are in a crisis, it can be tough to find help. Almost every community has places that can help with some bills. The key to getting the help is to know where to start looking.

I am writing this article from the perspective of a nonprofit director who has helped people who were in crisis. Every community has a slightly different system and every agency requires different qualifications. This article is a general starting point for people who need help with bills.

If you are looking for help with bills, there are a couple of things to know.

Forget about asking for help with credit card payments or other types of revolving credit. Organizations that offer bill assistance will only help with emergency funding for necessities as funds are available. That credit card bill may be high on your list but it won't make the cut for their list.

Workers usually want to help but funds may not be available.

You may need to have proof of income, rent receipts and identification for every person living in the household and identification for yourself. The paperwork varies so calling an agency ahead of time can save you time and frustration. 

Utility assistance
Call your utility company to see what they will do. They may have programs that can help with bills. If not, the workers can usually suggest places that are in your community where you can look.

United Way
This organization does not typically provide assistance. However; they can be a good referral source and can often direct you to the right agency.

Help agencies
General help agencies in your community may be able to help with bills. A pantry may be able to provide you with a box of food. Obviously, this won't directly help with rent or utilities. What a food box can do is free up funds that can be used in other areas.

Churches
If you go to church, then start there. Talk with your pastor about your situation and see if your church can help. At the very least, your pastor can support you through the process and may be able to make referrals or fax agencies that can help.

Toys
Getting help with the bills at Christmas can mean that you need toys. There are people who can help. Your child's guidance counselor, pastor, day care or agency may be able to get you on an Angel Tree list. Be reasonable with your expectations. Families who are adopted from these trees are typically adopted by a small group of people like you and me. Leave the iPads, iPods and Xbox off of your child's Christmas list.

Think outside the box
Agencies run out of money too. Don't wait until you are in crisis to start getting help with bills. Being proactive can help you make a few dollars here and there. Taking cookies to work and asking for donations, eBay, holding a yard sale, collecting aluminum cans, raking leaves or shoveling snow off of driveways can help. It may not solve all of your problems but it may help buy some time.

Modest Needs
This organization may be able to help with small grants. They are not an emergency funding source and they do ask for documentation. If you are getting help with bills from any source, you almost always have to provide information.