Lesson 8: In our ongoing Wealth Wisdom video series, we’ll teach you financial fundamentals. In this eighth lesson, Jerrie Guthrey, a certified public accountant and credit counselor for 19 years, will explain how to handle creditors if you know you can’t pay your bills:
Here is her advice for how to handle your creditors:
- There are many factors that can affect your ability to pay your creditors: layoffs, medical issues, etc.
- Don’t feel like you’re alone or that you’re the first first person to have these issues.
- Call you creditors and let them know what you can pay and when they can expect to receive payment.
- Follow through with your plan and with the commitment you made to them.
- If you tell them you can pay a lower amount, they may be willing to accept that as your new monthly payment.
- Make sure you keep the payments current on any secured debt (utilities, home, auto).
- Medical bills, personal loans, or credit cards are the ones to negotiate first.
- Don’t be afraid to call your creditors and have a plan to present them when you do.
Learn More: This is good advice for how to handle your creditors. If you want to know more, visit our Credit Card Debt Negotiation section.
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