Ignoring debt will compound the problem. Whenever you are having financial difficulties that may make it hard to pay your credit accounts on time, it is always a good idea to contact your creditors and let them know so that, perhaps, you may make payment arrangements suitable to you both. Otherwise, your creditors may have no other choice but to assume that you either forgot or just did not care to make the payments-obviously not what you intended. If you don't contact them and simply pay less than the minimum payments, your creditors will still consider your account past due, and most likely impose penalties that will make it even harder for you to keep up.

Another idea for heading off future credit problems may be to contact the National Foundation for Consumer Credit (NFCC). The NFCC provides low-cost debt counseling, financial education, budgeting assistance and other financial services for consumers.

Should you find yourself in serious financial straits, they also offer what are called Debt Management Plans. A Debt Management Plan can offer a systematic way to pay down outstanding debt in situations where no other alternative exists, barring bankruptcy. It works by allowing the NFCC to pay a predetermined amount to your creditors every month. You pay the NFCC and they, in turn, pay your creditors. Often, the credit counselors can negotiate for lower rates or fees, to help you get out of debt faster.

The positive aspect of such a plan is that your bills will eventually be paid down and you will be virtually free of any more contact with your creditors. The possibly negative aspect is that going into such a plan usually means that you will not be paying your debts as originally agreed with the lenders. Credit grantors are likely to report such accounts differently than accounts paid as agreed, which can damage your credit standing. It's better than a slew of delinquencies and charge-offs or, worse, a bankruptcy, but it isn't an easy way out, either. You will need to discuss the pros and cons with a credit counselor. To locate an office nearby, check the NFCC web site at http://www.nfcc.org or call toll-free 1-800-388-2227 for 24-hour automated office listings.

 

 

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