Negotiating With Creditors

Many people get behind on bills at least once during their lifetimes. The first thing to do when bills are past due is to be sure the basic needs such as food, rent and utilities are met. Child support payments are another top priority.

Once behind on a bill, contract the creditor and attempt to negotiate a new repayment plan. Stay in contact with them and don't refuse their contacts with you. Be honest and open with creditors. Negotiation by letter is better than in person or by phone.

When dealing with a collection agency, avoid in-person negotiations. Collection agency personnel can be very aggressive and demanding. Consumers have certain rights under the Fair Debt Collection Practices Act when it comes to dealing with debt collectors. When dealing with creditors, be polite, specific and practical.