Behind on Debt Payments? Here’s What to Do.

If you have been getting letters and phone calls regarding payments to a creditor and you know you’re behind on your payments, the best thing to do is to contact the companies you owe as soon as possible. Explain your financial situation and request to set up a payment plan that you can afford to pay on. Everyone benefits when you’re making payments toward reducing your debt, so many creditors are more than willing to discuss a payment strategy and work with you to make the amounts manageable.

If you haven't contacted the companies to whom you owe a debt, after a period of time your debt may be sold to a collections agency. If that happens, you’ll get letters and calls from a different company.

But the remedy is the same: Call the collection agency to set up a payment plan with them. Getting a payment plan set up is better than doing nothing at all!

Remember, just because you are behind on your payments doesn’t mean you have no rights. The Fair Debt Collection Practices Act ensures you are treated fairly and honestly and that collectors are not abusive or threatening toward you.

If you've recently cleared a debt from your credit history, you may be closer to the goal of homeownership than you realize! Let's discuss your options. Contact me today!

*I am not a credit counselor nor representing a financial advisement firm. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation.

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