A Good Credit Score

A Good Credit Score

Calling Your Creditors

Credit providers have built a reputation of being some of the most intimidating callers in the world. In general, they are folks that you don’t particularly want to talk to at any point in time. There are occasions, however, when you have to talk to your creditors. If you are having trouble making payments on a credit card or you need to work out a special payment arrangement, then it is best to face the reality of your situation as quickly as possible. Calling a credit card company isn’t easy, but it helps if you know the right things to say.

When sitting down to call your creditors, it is important that you have done all of your homework. Have a look at your free annual credit report by visiting Annual Credit Report before you make that phone call. That way, you will know exactly what sort of payment record you have before sitting down to speak with your lender. In addition, do some self evaluation to figure out exactly how much you owe to all creditors and match that against how much money you are capable of paying back each month. By having a responsible plan in place, you will be able to work more effectively with creditors.

Creditors value your honesty. They want to get their money back, so they are often willing to work with you. They key, however, is to be honest with them about where you and how you plan to go forward. If you don’t have enough monthly income to make the minimum monthly payment, then let them know that. Many credit card companies are now offering six month programs which will enable you to put off some of the payments or lessen the payments to a point where they are manageable. This time could help you get back on your feet and build a solid financial base for paying off the debt.

Stretching the truth doesn’t always hurt. When dealing with your creditors, make your story stretch as far as possible. It will help if they think that there is some explanation for why you’ve been late with the payments. It’s not smart to lie to the credit card companies, but if you have been sick for a while, let them know that it affected your ability to work. If you were in an accident, make sure it sounds as serious as possible. It may or may not have had an effect on your ability to bring in a paycheck, but it will likely earn a temporary reprieve from credit card companies.

There are plenty of things to be learned in personal finance and controlling debt is one of them. CNN’s fantastic breakdown of this process should be read by everyone at CNN’s Money 101. Until you have learned to manage that debt, you should be on the lookout for creditors, though. The most important thing is not to run from them, but rather to talk it out with those people until you find a solution that works. In the end, that’s what they want more than anything else.

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