It’s not uncommon for people to have a range of emotions when dealing with creditors. Some people are scared because the situation is overwhelming. They’re rightfully concerned about their financial future. Others are frustrated because of the way they’re being disrespected by a creditor over the phone. Some creditors aren’t exactly nice about getting their message across and they can definitely turn up the pressure. And finally, some people get to the point of anger because of all the phone calls which can be embarrassing if friends or relatives are nearby during the call. The phone calls always seem to come at the worst possible time too!
So, how do you deal with creditors? After all, they’re trying to get you to pay what you already owe them, right? You can’t blame them. But, they must be respectful and treat your fairly.
I’ve had some interest in sharing tips with people lately on this subject. I just received an email from a reader this week who told me creditors are calling and she needs some practical steps to put in action.
I came across what I think is a good video from Crown Financial Ministries that provides simple tips in just a few minutes to apply when dealing with creditors.
- Keep talking to creditors. Establish a dialogue and stay in communication.
- Let them know the details on your loan. Let them know you have all the information such as the account number, amount owed, etc.
- Tell them about your circumstances. They need to understand your situation and who else you owe money to.
- Establish a payment plan and show that plan to them. Let them know when you think you can pay them and when the debt will be paid in full.
Overall, I these are good tips to get started. Let me just say taking these steps require you taking ownership of your debt. It requires some work to get your information together. You have to be organized. You must set up a budget in order to determine how much you can pay the creditor and when you can pay it.
I loved how the video ends with the recommendation of you to trying this yourself first. You may need to work with a Money Map Coach or even a debt counselor, but try doing this on your own first.
I’ll close by mentioning that you’re human and again, you deserve to be treated with respect. You may be in debt, but you are still a person with rights. Fair debt collection practices establish that a debtor cannot be harassed by a debt collector. If you’re being harassed don’t hesitate reporting the creditor to the Fair Debt Collection Agency.
What do you think about these tips in dealing with creditors?
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