For the first time in years, I have found myself behind in paying bills. Last February (2007), I was laid off from a job I had held for 13-1/2 years. It took me until this past October to find another job.

Because I was unemployed for seven months, I had no income other than unemployment. What is amazing is I was able to keep up with all of my bills during that period. I received a decent severance package and cashed out my 401(k), so that was a financial cushion.

So here I am, employed full-time, and now I can't pay my bills. The firm where I work changed their pay schedule to every other Friday. Sounds good, right? Unfortunately, instead of 24 paychecks, we now receive 26. Again, sounds good, right? Sadly, because the pay is spread out, what I take home is less. Does what I wrote make sense?

So where am I going with all of this? Here is my question: How do I approach my creditors to let them know I can no longer keep up with even the minimum payments?

If anyone has been in a similar situation, I would sure appreciate your advice.