Are you in debt and unable to make payments?

Debt – most of us have an obligation. We use credit cards and have full intention to make payments. However, sometimes, things don’t go according to plan. Something can happen in our lives that makes it impossible for us to continue to maintain our commitment to pay. If you are in debt and you cannot make a payment, do not panic, and do not neglect!

Ignoring your creditors may seem like a smart thing to do, you can’t pay them, but actually, that’s not the right choice. That’s because your creditors can report you to the credit bureau and it can affect many aspects of your life. This means that you may be rejected for the job you are applying for, you may have to pay more for insurance, maybe you will be refused a rental property. Bottom line – not doing anything is not a smart solution.

Instead, sit down and start compiling a list of your creditors that includes secured and unsecured debt. You can start talking to them and explain your situation and why you can’t pay. Some of them might work with you, while others might not.

You must prioritize your debt so you can decide which one you will try to pay with your limited funds. For example, paying a mortgage and utility will be more important than paying for your credit card, because you can become homeless and without electricity or gas. If the situation is terrible, you might walk away from home. In this case, you still want to keep utility companies happy, because you will always need utilities.

Debt Collection Agents Come Calling

It won’t be too long before you hear from a debt collection agency, which is a third-party agent who buys another company’s debt that hasn’t been paid for and then tries to recover some of the amounts. They can cause chaos in your life if you don’t know what steps to take to prevent it.

How You Should Handle a Debt Collection Agent

They will call you morning, noon and night at each number they think you can contact. Instruct them not to call and only contact you in writing. Know your rights under the ‘Fair Debt Collection Agent Act,’ and make sure you understand the restrictions law. The problem of dealing directly with a debt agent to determine the settlement makes you have no protection for your rights. Finish wisely.

What are your choices?

The best choice is to contact a professional organization that can challenge, refute, and eliminate damage caused by debt collection agencies. Or, you can try to improve your credit if you have the time and expertise. Honestly, you better leave something as important as your credit score in the hands of professionals.