How to Deal Directly With Creditors and Not Credit Collection Agencies

Instead of waiting for a creditor to contact you, or worse, send your account to a collection agency, contact the creditor if you missed or will be missing a payment. Most creditors will work with you, but it's important to have an understanding of your current financial situation.

Instructions

1

Contact creditors as soon as you miss a payment or are about to miss a payment. By contacting creditors, you can work with them to lower your monthly payment, create a new payment amount, change the payment due date or make arrangements to repay past due balances.

2

Gather credit card and loan statements. Review your finances and create a budget that you can follow each month. This budget should include how much you can afford to pay creditors each month. Being able to ask for specific payment amounts each month shows creditors that you are working to repay your debt and are not trying to get out of paying it. Although it may not accept this amount at first, negotiate to get the best repayment amount possible.

3

Cite your creditworthiness, customer loyalty and other positive financial attributes you have. If you've never missed a payment before, this is your best strategy. If you have missed payments before, contact the creditor anyway and explain your current financial situation and your plan for getting out of debt.

4

Ask for new payment arrangements to be sent to you in writing. Keep this new agreement in your files.

5

Make your new payments each month to show creditors that you are working to repay your debt. By making regular payments, you will begin to rebuild your credit. This will make an impact on your credit report and score.