You hate to let a temporary financial setback impact your good standing with your creditors and lower your credit score for years to come. If you find that money is tight and you won’t be able to keep up with bills, take action right away.
Not all creditors will accept payment plans, but they’ll be more likely to work with you if you have been a good customer and if you contact them before they contact you. Before you contact each creditor, make sure you’ll be able to pay the monthly amount in your agreement. If you fail to follow the new plan, your creditor will be less likely to work with you again.
Here are some options you could request from your creditor:
- Reduce your monthly payment amount
- Reduce or drop charges for late payments
- Refinance the loan at a lower interest rate
- Pay interest only on the loan until you can resume making monthly payments
- Request permission to sell the item and use the cash to repay – or partially repay – the debt
Links of Interest:
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