Almost no one enjoys dealing with creditors and collection agents. They always call at the most inconvenient time, they are usually annoying, and they make you feel like you are being a deadbeat. But the best way to handle them is to deal with them head on. Hiding out from them ends up hurting no one but yourself.
When dealing with creditors, your primary concern should be to maintain a good relationship with them. This way they may give you a few breaks. Be proactive when you know that you are going to be late making a payment. This shows them that you are not trying to evade your responsibility. And be upfront with them about why you are going to be late. if you have just lost your job or you have been sick and unable to work let them know.
Keep in mind that creditors are people too. And even though it may seem otherwise, they are not all heartless. And they appreciate someone who calls them instead of them having to track that person down to get their money. In addition, keeping in contact with them maintains the good relationship between the two of you.
Keep control of your emotions when talking to them over the phone. Don’t lose your temper. Speak in a calm and polite manner. Explain, in detail, the state of affairs to them. Then try to work out a payment plan with them that will make both of you happy. But don’t promise more than you can deliver or else you will end up making another call to them in a couple of months as to why you can’t pay.
Before you even call them, sit down and calculate the maximum amount that you will be able to pay them and on what schedule and try to make an arrangement around that.
Sometimes, they can even offer alternative payment plans which is better than what you may have planned. But you will never know, unless you call them.
When you talk to them, emphasize that you fully intend to pay them back 100% of your debt. Even if you are currently having trouble coming up with the monies to pay them and that you may be a bit late in your next payment as well. A favorite method that many creditors have of dealing with a situation like this is simply to lower the monthly payments and extend the payment period. So instead of paying $ 100 a month for 3 years, you might agree to pay $ 50 a month for 6 years. Or you might agree to skip a couple of months and have the debt extended by tacking on the missed payments to the end of the loan.
The most important thing to remember is to not feel ashamed. Be willing to talk to your creditors and you can often work out an arrangement that is beneficial to the both of you.