How to Handle Creditors If I Know I Cannot Pay My Bills
At some point, everyone experiences financial problems. If you're unable to pay your bills, you don't have to submit to months of creditor harassment. Follow these steps to take charge of a diffcult situation. Don't let yourself feel overwhelmed!
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Instructions
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Steps for Handling Creditors When You Know You Cannot Pay Your Bills
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Determine the extent of your debt. Request a free copy of your credit report with one of the many online credit monitoring sites. Once you have your credit report, make a list of your debts, including monthly minimums and total balances.
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Determine how much you can afford to pay to your creditors each month. Subtract from your monthly income your usual living expenses. Include housing, utilities, transportation, food, and insurance. With whatever you have left start paying your unsecured debt.
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Contact your creditors to explain the situation. See if you can agree on a payment arrangement that makes everyone happy. They may refer you to someone who can offer you a solution to your debt problem.
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Research your options online. There are several debt solutions you should explore, including debt settlement and debt consolidation. Search for articles that contain the pros and cons of each debt solution. See which options work for your situation. Remember, these sites can help you only if you have at least some money to pay your debt.
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Write a letter to your creditors. If you know you cannot pay your bills and don't know when you can, explain your situation to your creditors. In your letter, tell them you don't want to be called at home or at work. Tell them you don't want any of your relatives or references contacted either. This will prevent those harassing calls.
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Tips & Warnings
Research debt solution options carefully online. Make sure you qualify for the debt solution option you find. Match your budget with whatever amount the debt solution requires.
Write a "Do Not Call" letter to your creditors. This will legally protect you from harassing phone calls.
Bankruptcy laws have changed. Now, its much harder to qualify.
For great consumer information, visit NEDAP at http://www.nedap.org/resources/consumer.html. They have sample "Do Not Call" letters you can send to your creditors.
Debt hurts your credit rating.
Not paying your bills will lower your credit rating.
Using debt solutions may also lower your credit rating.
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Comments
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debtresolution
Jun 28, 2009
I always recommend to my clients to pay them what you can. If they try to take you to court, and the judge sees that you have made consistent payments, (even if the payments were small), chances are the judge will empathize with you and help you make arrangements. The creditor can never say that you never made payments. This has helped me. I hope it helps someone else. -
debtresolution
Jun 28, 2009
I am so sorry to read that you are spiritually and physically stressed out. However, if you have a good amount of access to a computer and internet access, you can start to generate extra income online. That will help you deal with your current debts a little at a time. It sounds like so many things you have heard before that might have been scams. Yet, with proper guidance and effort, you can turn your financial situation around. You can find help at a blog entitled, "Conquering Debt For 2009". I will send you the link. You dont need money to begin creating revenues. You just need a little time and patience. I hope this helps. God bless you.
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nicolegal98
Dec 03, 2008
I am a victim of felony domestic battery, which resulted in a broken collar bone and rib. As a result, I lost my job, have no money, no place to live, my bank ccount is SO overdrawn. I was so hurt and unable to work for almost 8 weeks. I have 5 credit cards that I have always paid on time, a financed car, car insurance, a phone and 2 on line payday loans, ie.....Whee do I begin to dig myself out of this nightmare. I am an emotional wreck, stilooking for work all the while, still hurt and healing. HELP
