Contacting Your Creditors and Dealing with Debt Collectors

Contacting Your Creditors

Contact your creditors immediately if you're having trouble making ends meet. Tell them why it's difficult for you, and try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you. Waiting this long to contact your creditors can damage your credit rating so to help protect your credit rating and credit report, be sure to inform your creditors of your current situation and negotiate a new payment schedule if possible.

If you don't want to contact your creditors yourself, you may want to consider using a Credit Counselor who can negotiate with your creditors on your behalf.   If you are considering this course of action, see Credit Counseling, Is It Something For You?

Dealing with Debt Collectors

The Fair Debt Collection Practices Act is the federal law that dictates how and when a debt collector may contact you. A debt collector may not call you before 8 a.m., after 9 p.m., or while you're at work if the collector knows that your employer doesn't approve of the calls. Debt collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact.

For more information on dealing with debt collectors, see The Fair Debt Collection Practices Act