How to Deal With Creditors

How you deal with creditors can depend in large part on the relationship you have with your creditors. If you have been paying your bills on time for years, dealing with your creditors can be easy and even pleasant. If you fall behind on your payments, your creditors may begin to harass you with phone calls, letters or even lawsuits. What your objective is regarding your debt can determine the best method for dealing with your creditors.

Instructions

1

Determine your objective. Your strategy for dealing with creditors can vary quite a bit depending on whether you pay your creditors on time, if you need a little extra time to catch up on your payments or if you intend to file bankruptcy and walk away from your debt.

2

Pay your bills. The most effective way to get creditors off your back if they are harassing you for payment is to pay them. If you can't afford to pay the total amount you owe, even a smaller payment made in good faith is often enough to show creditors that you intend to pay your debts.

3

Negotiate a settlement. If you can't pay your debts but don't want to file bankruptcy, call and talk to your creditors. If you show a willingness to pay off at least some of your debt, your creditors may be willing to negotiate a reduction in your balance owed, or at least in the interest rate that you pay. Oftentimes, you will receive your best negotiated settlement offers if you have missed a few payments, since creditors may be nervous that you will file bankruptcy.

4

Call and tell them to stop contacting you. If you can't handle the constant collection calls, tell your creditor that you no longer wish to receive them. Under the provisions of the Fair Debt Collection Practices Act, you have the right to inform your creditors that you are aware of your debt and no longer wish to be contacted about it.

5

File bankruptcy. In addition to ultimately discharging most or all of your debt, if you file bankruptcy your creditors, by law, must immediately stop contacting you. Once you file a case with the bankruptcy court, it becomes illegal under bankruptcy's automatic stay for creditors to pursue you.