to the letter.

5. Start calling the debt collectors.

Yes, you did read that correctly. Call them, surprise them by volunteering your current address, phone number, job, etc. Taking that very first step and contacting them will actually impress them, and it will score you some brownie points if it ever comes to having to ask for an extension on a payment. Once you have gotten in touch with them, you can establish a payment plan that will keep them from garnishing your wages, and still allow you to be able to put food on the table. (Not always so with debt consolidation, by the way.) After you have established a payment plan, you can set up a system discussed later that will make organizing your bills a breeze. Don't forget to keep notes on your conversation with the customer service representative, including their name, the date and time, the number you called, and any pertinent information you are able to obtain.

Find out who your account representative is (it will usually be one person) and establish yourself with them. Tell them your current financial situation (only as much as they need to know, of course) and work with them to focus your realistic goals for settling the account. Keep them updated, and call them ahead of time if you see you will need an extension. Keep in mind that most collections departments will be willing to accept a settlement, especially with regard to more substantial debt. However, please note that a settlement will be posted to your credit report as just that, a settlement for less than original amount. If this is not a concern for you (my credit score went up quite a bit because of several settlements) then by all means, accept the offered settlement if it is financially feasible. Otherwise, you will just have to continue to make the agreed-upon payments until the debt is paid in full, which will, of course, take longer. Depending on how substantial the amount owed is, it may wind up "falling off" your report before you get the balance paid.

6. Set up a system to organize your bills.

I have found several useful ways to deal with all the paper and headaches that come with paying bills:

*First, get a calendar. I would suggest one that has a week spanning two pages. This gives you plenty of room to write any notes about a specific day. Write down the due dates and amounts of each one of your bills, as far out in advance as you know them. Most of the time when you are on a payment plan for an old

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