Dealing with Creditors
When dealing with creditors, it is very important to keep them in the loop if you find yourself falling behind in your payments. Most reputable creditors will work with you if you follow some very basic steps.
Communicate With Your Creditors
The first thing you want to do is to communicate with your creditor(s). When you communicate with them and let them know the situation that you are in, you communicate integrity and trustworthiness. When they have to come looking for you, you communicate that you are untrustworthy and are trying to keep from paying what you owe.
Have A Plan
When you communicate with your creditors, try to go and see them in person rather than just talking with them over the phone. You become more "real" to them rather than just a voice on the phone. You also communicate that you are credible and that you desire to pay what you owe. You will want to have a repayment plan prepared in advance. This means that you will have to show them your income as well as your expenses. In short, you will have to have a budget prepared.
Be Fair And Balanced
Your budget needs to be balanced and it needs to be fair to your creditors. Sometimes they will accept less or restructure your payments so that they get their money back. If after your payments are restructured you fail to keep up with the payment schedule you said you could live with, you will lose credibility and they may not work with you any more.
Communication is by far the most important thing when dealing with creditors. They want to know and understand your position. If you do your due diligence and come up with a workable plan you may just find that they are willing partners to help you get out of the mess that you are in. After all they still want to get paid and will make out better when they work with you than if they have to take you to court. It is up to you to take that step and contact your creditors.
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