Setting Up Payment Plans with Creditors

If you have started falling behind on paying your monthly bills and insurance renewals this can get you into financial trouble quickly. The sooner you admit you have taken on more than you can handle and make the effort to get help, the less likely it is that you will lose your financial footing and have to pay extra fees or file for bankruptcy. Most creditors are more than willing to set up a payment schedule if you show you are honest about needing help and are willing to take responsibility for your debt.

Getting the Help You Need

As soon as you realize you are unable to keep up with the current payments that are expected of you, call for help. Tell your creditors what is making you fall behind and that you are willing to pay off your debt if they will help you get on a plan you can afford. Be honest about what you can pay so you do not wind up on a schedule you cannot handle and land yourself in the exact same position all over again a few months down the road.

Make sure you get a copy of your agreement in writing, even if the person you speak to in person or on the phone gives you their word that your schedule is confirmed. This is proof that your financial agreement is on record with the company and a written contract will provide you the legal footing you will need in case any issue comes up with your payment schedule. Most companies will not allow you to start a payment schedule without filling out a contract so this should not be a difficult request for your lenders to fill.

When you receive the written contract of your payment agreement, read it through in full. Make note of when payments are due, exactly how much you must send and where the payments should be made. These contracts often have serious penalties if you start falling behind on payments so make sure you have agreed to an amount you can afford to pay each month and do not take your responsibility to make these payments lightly. Knowing what is expected of you and what the penalties are if you do not comply with the agreement at hand will make it far less likely that you will be caught by surprise with a penalty you did not expect.

If you are worried about making payments to multiple companies, see if you can consolidate your debt into one monthly payment. This will help you avoid mounting interest charges that make it impossible to eliminate your debt as time progresses. There are several ways to go about consolidating loans from several companies, so talk to your bank about what services are available to you and what might provide the right amount of financial stability without putting your other assets such as your home at risk in the process.

Once you are finished setting up payment plans with creditors, keeping to the terms of your contract will be a full time job. In order to save your financial portfolio you will need to stay on top of these payments and make sure you are never late with the money you owe. This is your opportunity to improve your economic standing and erase the large amount of debt you have. If you were honest about what you could afford when you started your payment schedule you should have no trouble fulfilling the obligations now expected of you.

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