Unemployed or underemployed and can’t make payments on your loans? You are not alone.

The American Banking Association recently released a report indicating that a lot of Americans are not paying their bills.

…delinquencies on consumer debt rose to a record 3.23% in the first quarter of 2009, up slightly from the previous quarter.

This number does not include credit card debt.

Similarly, the balances on those late credit card accounts rose to 6.6% of all outstanding bank card debt, marking another record high.

The reports shouldn’t be surprising. If you have no money or are making less than you did, paying bills becomes difficult if not impossible.

Don’t dodge bill collectors or anyone you owe. Be forthright and explain your situation or try to make some small payment if you can.

Prioritize your bills. Pay the essentials such as mortgage or rent, transportation to get to work and utilities.

You aren’t the only one. Ask for a restructuring of your mortgage, if you can. If it is true hardship you can ask to reduce the interest rate on your loan with no additional fees. Some income requirements may be imposed but remember companies also want their money too. Late payments and delinquencies also can mar your credit report but making some effort will be better than doing nothing.

I will gladly pay you Tuesday for a hamburger, in a cartoon this was cute. For a state in the 21st Century it’s not. California’s budget woes will make the state start handing out IOUs. This is a very dire situation. People who depend on that money can’t give their creditors IOUs. What can they tell their creditors or utilities? We can’t pay you because we’re not getting my money. Even though the money isn’t directly for government salaries the vendors who deal with the state won’t receive payments which are used for salaries and their own business expenses.

Some states are notoriously slow in making payments to vendors but regular workers always had priority. Who will be next if the state won’t be able to pay its creditors? Furlough days for government workers is the pejorative buzzword that has been going around. The small vendors and businesses that aren’t getting money from the state will contribute to the further decline in the money problems.

If an agreement is reached before 4 p.m. CST then the IOU would just be nothing more than a bad dream. Otherwise, those who deal with the state of California as a customer may have to face some budget woes of their own.

The state’s long-term bond rating is in jeopardy, as well. It already has the worst credit rating in the nation.

Fitch Ratings last week downgraded the state’s long-term general obligation bonds to A-, from A, and placed them on a negative ratings watch, signaling the company’s concern about California’s ability to solve its liquidity crisis.

Just like individuals, those with the worst credit ratings have to pay more to borrow money which will cost the taxpayers more in the long run.