ALL OTHER PLASTIC
Bank-issued credit cards, like American Express (Stock Quote: AXP), Visa (Stock Quote: V), MasterCard (Stock Quote: MA) and Discover (Stock Quote: DFS), tend to carry lower interest rates than store-issued credit cards. That said, if you are late or only paying the minimum, expect that rates to jump, as well, and see your credit score undergo pain. When you’ve gotten calls from the collection agent, that’s when you know your delinquency has hit your credit report. It will likely stay there for about seven years.
STUDENT LOANS
This is relatively “good” debt considering it carries a smaller interest rate than most other financial obligations and it won’t harm your credit score. Plus, loan officers may allow you to defer payment on federal loans if your financial situation proves particularly dire.
PHONE
It usually takes four or five months of non-payment for the cell phone provider to send the collection hounds after you. Until then, you face late fees and a bill that gets even scarier.
CABLE
In the grand scheme of things (considering your house and car), how important is paying to watch the Tudors on Showtime? If you can’t afford cable, quit while you’re ahead. Before you actually need to miss a payment, just cancel it. Do what I do and download missed episodes for $1.99 on Apple’s itunes (Stock Quote: APPL). Or watch it on your rich friend’s flat screen.
UTILITIES
Your heat is more important than your HBO (Stock Quote: TWX), admittedly, but the reason utilities rank lower here is because you may be more likely to avoid punishment for a missed payment. If it’s the dead of winter and you’re experiencing financial hardship, know this: During the winter, utilities are prohibited from shutting off your heat. Further, if you’re a senior citizen, are part of a low-income family with an infant or have a serious illness, your heat must stay on at all times, despite missing the payments. Also, in most, if not all states, if your landlord is behind on paying the building’s utility bill, it’s not your fault and you should still receive running water and heat. No matter what, call the utility company and explain your situation to get some assistance. Generally utilities can stop offering their services after 25 days of delinquency.
YOUR COPY OF DREAMGIRLS FROM BLOCKBUSTER
Unless you want to be forced to buy it, feel free to keep that DVD rental from Blockbuster (Stock Quote: BBI) for 30 days. Blockbuster’s policy says if customers don’t return a rental, they will have to buy it, but otherwise, if brought back within 30 days, it just costs a $1.25 restocking fee. How this company makes money is another story.
