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Credit Problems? Heres How to Manage Your Creditors
If you find that creditors are calling you almost daily or
that one of more of your bills has been turned over to a
collection agency, you should know how to manage your debts.
First, prioritize then or rank them in terms of the ones that
can give you the most trouble the soonest. If you're three months
behind on your utility bill and the company is threatening to cut
off your power, you must deal with this debt first. Then deal
with your other debts in descending order of "threat level."
Second, be proactive. Don't wait for creditors to call you. If
you are behind in your payments or have a payment coming due that
you know you won't be able to meet, call the creditor. Tell the
company's representative why you are having money troubles. Be
sure to give a real reason for your problems such as a divorce or
loss of a job, and not just some feeble excuse.
If you can give your creditors a real reason for being in
financial trouble, they may be sympathetic and willing to work
with you.
Next, contact any creditors where you are more than a month
behind to arrange payment plans. Explain to them that you know
you are behind in your payments but that you want to make a
payment arrangement. Let them know what you can afford to pay
this month and in future months. Make certain they know you
intend to make full payment eventually.
Be sure you know what you can afford to pay
Be sure to calculate just how much you can afford to pay a
creditor before contacting the company. Then, do not agree to pay
any more than this, no matter what the company demands. Get all
payment plans in writing. If the company's representative does
not volunteer to mail you the plan in writing, send a letter
requesting that he or she do so.
Keep accurate records
Also be sure to keep an accurate log of all phone
conversations with your creditors and copies of all
correspondence. This way, you will have a good record of what's
going on, to whom you spoke last, the date of that conversation
and its result. If you keep accurate records, you will always be
able to defend yourself against claims that you have been
unresponsive or uncooperative. Once you arrange a payment plan
that is agreeable to a creditor, make sure you stick with it. The
best way to repair your credit is to say what you will do and
then do what you have said so that your creditors will see that
you have become more credit worthy.
Working with your creditors by following these suggestions is
hard work but it is an important step toward debt reduction and
credit repair.
For FREE help with debt and credit, subscribe today to Douglas
Hanna's free email newsletter "8 Simple Steps to Debt Relief" at
http://www.all-in-one-info.com
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