Dealing with Creditors

If you can’t pay your bills and the letters are piling up in your mailbox, the most important thing to do in this situation is to stop ignoring them. Letting your bills pile up isn’t going to solve anything…in fact, it will eventually ruin your credit. But, before you’re turned over to a collection agency, there are a few things you can do.

First, talk to your creditors. They want to hear the truth from you, so explain your situation. You may feel like it’s none of their business, but talking to them just might get you an extended due date or a reduced payment. If they offer you a repayment plan that is still out of your budget, don’t accept it. Tell them flat out that you cannot afford it and ask if it can be lowered. If they will not work with you, ask to speak to a manager.

If you are able to pay off your debt in full or partially, be sure to ask your creditor if they will remove any negative information they have put on your credit report. Do this before you send them any money.

Don’t give in to a creditor if you don’t like the deal they’ve given you. Ask for more if you want it and end the conversation if they won’t agree to it. Give it a few days and try again. Negotiating is a big part of dealing with creditors, so play their game and you just might end up winning!

Try asking your creditor if they will settle for a lump sum. If they agree to this, get it in writing that your bill has been paid in full.

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