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If one catches cold and ignores it, the cold may turn into pneumonia. If the same person ignores their mounting debt problem, well, you get the picture. A friend of mine is in the same business as me, and he had a cavalier attitude over his credit card expenses. Never the one to pay much attention to his ever increasing debt, even though I was warning him to keep an eye on it. Then, like a nightmare, it happened. He could not pay for his fuel with his credit card. His purchase was given the cold phrase, "declined". In my business, this is tantamount to death. If your truck is not moving, your making no money.

After a long conversation with him that weekend, we started looking through all his receipts and checking all his statements, it had warning signs written all over it, but he either ignored them or chose not to understand. It was too late, he had to put his beloved truck up for sale and become a dreaded company driver. Since then, I am told, he has become an idol of financial responsibility.

All of this unfortunate circumstances could have been avoided if he only paid attention to the incoming and outgoing of his cash. I am sure there were times he must have fell behind on some of his fuel purchasing debts, but instead of hoping it would get better, or thinking he might catch a break, he should have called the finance company and talked it over. He would have been surprised, as I was, at how willing they are at trying to work things out for you. Neither you nor they want to have to go to court to recoup their money. Talk to them, and they will listen. Don't talk, and your in trouble.

It is not easy these days trying to keep afloat in business, especially if you are in the transportation business, with the rising cost of everything. Add to this the unbelievable cost of diesel. So keeping your creditors informed honestly about your situation helps greatly. I have been there, and I know first hand. When the cost of diesel skyrocketed last year, I immediately began negotiating with my creditors to work out easier payment arrangements for myself. It worked like a charm, and made me feel at ease that at least I have not to worry about answering my cellphone. And better yet, not just ignoring it. If you don't ignore the debt, and work at it, you may never hear that ugly word "declined" again!

Learn more about this author, Frank Butry.
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