Credit Repair: How To Deal With Your Creditors

If you are in danger of credit problems because you have more debts than you can handle, there are things you can do at least keep your creditors reasonably happy.

First, prioritize your debts or rank them in terms of the ones that can give you the most trouble the quickest. If you're three months behind on your utility bill and the company is threatening to cut off your power, you should deal with this debt first.

Second, be sure to keep an accurate log of all phone conversations with 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. It's not uncommon for large corporations to have different people or even different departments contacting you about late or missed payments. If you keep accurate records, you will always be able to defend yourself against the claim that you have been unresponsive or uncooperative.

It's kind of human nature to want to run away and hide from creditors. But it's better to be aggressive. If you know you are not going to be able to meet a mortgage or credit card payment, call the company before the payment is due. 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, you may find that they are sympathetic and willing to work with you.

Your next step is to arrange a payment plan. When you contact your creditors' representatives, explain that you know you are behind in your payments but that you want t make a payment arrangement. Let them know what you can afford to pay this month and the next. Make certain they know you intend to make full payment eventually.

You might also see if one or more of your creditors would be willing to let you skip a month's payment. Be sure to 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. 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. It may take a number of phone calls before the company agrees to a reduced payment. If the company keeps saying "no" to your offer, keep calling until you get a different answer. Or ask to speak to the representative's supervisor as he or she may have more authority to work out a plan with you.

Finally, always try to negotiate. Your landlord may be willing to let you miss a payment now if you make it up at the end of the lease.

If you have a mortgage, ask your lender if they would take a 60 percent payment now with the promise to make this up over the next few months. If you will be paying late, explain the circumstances and ask that at least they waive the late fees.

If you are having trouble paying for your utilities, see if you can switch to a budget plan or set up a partial payment plan. Most utilities will not cut off your service so long as you are making some kind of payment.

You could sell your car and purchase a cheaper one if a car payment is a problem. If you're going to make a late payment, be sure to let the lender know in advance. Otherwise, you might find your car has been repossessed. You might ask for an extension of the loan. For example, if you have 36 months left to pay, you might ask to extend this to 42 months in return for lower monthly payments. And if you are leasing a car, see if you can terminate the lease early. All the leasing company can say is "no."

Being in serious debt is never any fun. But if you tell your creditors what you will do and then do what you say, things will get better.

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

---

Powered by Feedzilla

Ebooks, Scripts, Websites, and more...

Cheap Domain Names

Understanding Credit Card Penalties

Because most of us have one or two credit cards... Read More

Check Your Credit Before Shopping For That Home Loan

Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

Credit Worthiness

Credit Worthiness is an important business and personal asset each... Read More

Easing Your Financial Burdens With Credit Counseling

It is a well-publicized fact that more of us are... Read More

Identity Theft ? How Can You Prevent It Happening to You?

The nightmare of identity theft strikes an estimated 750,000 people... Read More

Credit Score: The Brightest Feather In Your Financial Cap

Credit scores are the most important aspect that determines your... Read More

What is a Credit Report?

Ever wondered what is a credit report? If you've ever... Read More

Save Money and Lower your Payments by Improving or Repairing Your Credit

Having a better credit score not only represents easier access... Read More

7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need

Prepaid debit cards are great financial tools and may be... Read More

Errors on Your Credit Report: What You Should Do

There are times when you may be turned down for... Read More

Do You Want to Get a New Credit Card at a Great Rate?

1) Do your homework. Applying for and getting approved for... Read More

ChexSystems: Alternative Options for People Whove Been Checking Accounts

Individual banks elect to become members of ChexSystems, and to... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time... Read More

Lower Your Credit Card Interest Rate Now!

With today's credit card companies, there are many opportunities to... Read More

Using Credit Cards Wisely

"I think money was stolen from my card" or "I... Read More

Big Brother Knows Whats in Your Credit Report - How About You?

Whether you are aware of it or not, credit bureaus... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States;... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

Always Avoid Payment Holidays

Once you've been paying off a credit card for a... Read More

Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards

Secured Credit Card is similar to a prepaid credit card... Read More