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
Here's a simple system on how to pay zero interest... Read More
"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More
Today there are so many different credit cards available, student... Read More
Let's face it, having credit is no longer a choice.... Read More
When you are deciding what type of credit card to... Read More
When you're dealing with credit cards, you're playing with fire.... Read More
Credit Cards and Loans sounds like just two things, but... Read More
With so many low interest credit cards on offer, how... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
The average American knows very little about bankruptcy. Most people... Read More
If gold medals were awarded for marketing consistency, the credit... Read More
Credit Worthiness is an important business and personal asset each... Read More
Having a credit card is a wonderful convenience for those... Read More
"I think money was stolen from my card" or "I... Read More
So-called "credit repair" companies claim they can remove negative information... Read More
Your credit report is a very important piece of the... Read More
About Search Entries:Every time a lender checks your credit history... Read More
Your credit file may not reflect all your credit accounts.... Read More
I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!Note: The... Read More
Can you establish good business credit if you have bad... Read More
Companies that issue credit cards want to make a profit.... Read More
What FACTA means is that if you, as an individual,... Read More
When you buy real estate, lenders run all of the... Read More
In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More
There is no end to the amount of pain that... Read More
Credit Cards can bankrupt you if you let them run... Read More
Credit counseling companies come in all shapes and sizes. Whether... Read More
Credit 101How does a creditor determine whether to grant you... Read More
Until recently lawyers for victims of credit damage had little... Read More
Even if you think you have a wonderful credit report,... Read More
Have you ever really looked at your credit card and... Read More
Credit cards have migrated from being hip or convenience product... Read More
Many employers are now looking at an applicant's credit report... Read More
For those of us who know how to use them... Read More
Most of us want a good credit report to obtain... Read More
Chances are you have received your share of "pre-approved" credit... Read More
By Federal law, you are entitled to one free credit... Read More
Getting worried that one of your clients, customers or patients... Read More
The average American knows very little about bankruptcy. Most people... Read More
Owning a credit card can be quite an advantage. Whether... Read More
Your credit report--a type of consumer report--contains information about where... Read More
Like me, you've probably been offered a fair old number... Read More
In this week's article, I am going to offer some... Read More
1- Check your credit report regularly2- Secure personal information in... Read More
Is identity theft really that serious? Thousands of people every... Read More
Do you have enormous credit card debt? You are certainly... Read More
Identity theft is the fastest growing crime according to the... Read More
FACTA stands for Fair and Accurate Credit Transaction Act. FACTA... Read More
Keep Your Credit History Clean - Remove A Negative Credit... Read More
Identity thieves take advantage of everyday opportunities to discover your... Read More
The Beginning of the Credit Card EraIn 1951, Diners Club... Read More
You can stop receiving credit card offers in the mail!... Read More
What are the avenues available to businesses with weak credit... Read More
Here are some useful tips on borrowing money. Borrowing money... Read More
If you are one of the millions of people out... Read More
Always shop around to get the best deal when choosing... Read More
Some credit cards offer a cash advance option. But how... Read More
If you've ever applied for a credit card or loan,... Read More
Even if you think you have a wonderful credit report,... Read More
Lenders are quite fussy about what they like to see... Read More
With interest rates rising, low or zero percent credit cards... Read More
Consumers often have the first credit card that they ever... Read More
Ever wonder how a creditor decides whether to grant you... Read More
The economic downturn of the last five years has affected... Read More
It's not as hard as you think to raise credit... Read More
Virtually all consumers will have a credit card at some... Read More
Credit |