dealing with creditors and payments?

Question

how do i deal with these creditors, i was out of work for 10 weeks with no pay due to a major surgery. I plan on paying everything back and to be current again, but some of these people want 300, 400 or more at a time and threaten if i do not pay that much a month, my account will be sent to legal collections.
I just can afford payments like these, how do i handle or "haggle" with them, im currently in a debt consolidatin program but they wont accept some of my bills...please help
ohh, "borrowing" money is not an option, i dont have enough credit to get a loan, and i have no friends or family that can loan me money, i see these people are trained to ask you that as if it's no big deal.

Answer 1

First, try to talk to each creditor, explain your situation and tell them what you can do, if they accept the arrangement, ask them to send the terms to you in writing. If they don't accept the terms, do it anyway, but make sure you leave a paper trail (pay with checks).

Second. stop answering the telephone. It does no good for you to get stressed out each time the phone rings, knowing you are doing your best. Yes they will threaten you with lawsuits and collections, but all you can do is all you can do.

Third, call them periodically after you send your payment or just to remind them of your situation just so they know you are trying to eliminate the debt. You can also ask if they will settle it for less. All they can say is no.

Go to www.daveramsey.com for more tips. He deals with this issue on his radio show every day. He also has a show on Fox Business Network.

Answer 2

First change your phone number, tell the phone company that you keep getting harassing phone call. No charge for the first time. This way you can live in peace! Second go to a Consolidation place, get all your bills wrapped up into one monthly payment. After this legally the creditors cannot ever call because the payment is in the mail. Now if you are really over your head! You can file a chapter 13 or a 7. 13 you will pay off all the bills, in a 2 year or 3 year period. Chapter 7 means you wipe away all your bills. Start all over again. Now consolidating your bills really is like doing a chapter 7 or 13. This is how it shows on your credit report. You are allowed to do a bankruptcy every 8 years. Big corporations do this all the time. The little guy is always told Oh this is so bad. No it isn't! So good luck!! Oh you know Donald Trump way back when did a 13.

Answer 3

Well you have a couple of options.First off.Dont let them bully you.No need for that.You have the right under the fair credit reporting act to stop the phone calls.
When they call explain your situation.Tell them you ran into some hard times and see if they can stop the overpayment and late fees.They can stop them.Now whether they will or not is a different story.
Dont agree to anything.They can hold you to a verbal agreement.Tell them that until the late fees stop.There is no way you can get caught up.
If I were you I would not even go through a debt consolidation place.They get 25% of the money you pay the credit company.Ask them straight out to cut you that 25% break and work something out.
If that dont help.Go talk to a bancruptcy attorney.Dont tell them that.That will get them off your back.As soon as you file.He will stop them from calling you.Dont be scared to file bancruptcy.Your credit will be better than it is right now in a year.
Those are really your only options.Other than just ignoring them.After 7 years it will go away.

Good luck

Answer 4

I don't understand how a "Debt Consolidation" program is not dealing with all the creditors - that seems "off" I would take a look at other services in the area and see if you are being scammed.
Basically the only way to deal with creditors is honestly - tell them what you can afford and set a pay schedule then stick to it - even if it means you have to call in a "check by phone" on a given day. Keep careful records and proof of payment so that if they break the agreement you have a recourse (get every agreement in writing).
To extend your money use coupons (get an Entertainment book for your area it is invaluable for the minimal investment join a video by mail service so you don't miss out on entertainment) believing you can live on beans and rice will depress you more than your indebtedness. If you have a credit card that is in good standing you may be able to consolidate some bills and pay 1 bill instead of many. There are allot of books on getting out of and staying out of debt check them out at the library. DON"T DESPAIR - really it isn't that bad - this will be behind you and if you are diligent in repayment it will pass quickly and your credit will recover in a few short years. Good Luck and keep a positive attitude!

Answer 5

I am so sorry you are going through this. I am in a similar situation as I too was out of work but it was due to an accident. Some bill collectors can be really rude and unreasonable. But don't let that scare you. First map out what you know you will be able to afford, get a postal money order and send it to them. Be sure to include a statement saying that due to financial hardship you can only afford to pay x amount of dollars at this time. Write in the letter that once your financial situation changes you will increase the payments. Be sure to make a copy of the letter for yourself along with a copy of the payment. Send them both together. If they send it back which I doubt they will then the next thing they will do is send you off to collections. If collections are not willing to work out an arrangement with you document who you spoke with, and when you spoke with them. The next thing they will do is send your case to a third party and do a civil suit against you. This is not as bad as it sounds. You will be faced with a mediator. At that time you inform the mediator of the arrangements that you are willing to make based on what you can afford, and show him/her a copy of the letter and payment that you sent to the creditor. Majority of the time they will work something out with you so there is no need to see the judge. If you get an asswipe you will have to see a judge. When you see the judge just explain your situation and show your documentation on your constant efforts to take care of your debt. It is likely that in the end they will have to settle with what you can afford. I have been through this situation. Good luck to you honey. Don't worry things will get better for you. Have a great day.

Answer 6

Intimidating is another word for these creditors asking for these amounts of money pal. Offer them what you can pay, at the end of the day they cant take what you have not got, if they decline let them send it to collections then you do the same with collections give them an offer they will try and put it up a bit but be honest say NO... Dont worry about them at least u can say u offerred some kind of payment, seek some advice from Citizens Advice if you get no luck trying to speak to these people.. Good Luck Hope All Goez OK..

Answer 7

Work out a budget for yourself. Write down all of your absolute expenses (rent, food, utility, transportation) and pay yourself first from each paycheck. Give yourself a small cushion. Next look at all of your bills together and devise what percentage each bill is against the total amount you owe everyone. Make the largest bills and the highest interest rates the largest part of your money. Next call each and every creditor and tell them exactly what you are going to pay them based on your budget. Ask them if there is any way that they can help you (lowering your interest rate, putting your account on hold, crediting you back some late fees). If they see that you mean business they will try to work with you. Also, try to only deal with one person. Ask them to not call you, put everything in writing and if they do tell them that your are only going to deal with Mr/Ms X who knows the full extent of your account. Try to make that person a manager if possible.

Good Luck.

Answer 8

Send them what you can in the mail. A lot of times they won't accept it over the phone because they want more, they say they can't accept that amount. They will accept a check sent to them. Just deal with the phone calls. Tell them you are doing all you can right now (even it is 10 dollars) that little payment shows that you are trying. Don't let them get to you. Just mail in what you can. Even 10 dollars.

Answer 9

Do you ever listen to "talk radio"? There is a man who answers questions such as yours and does a great job in helping people solve their debt problems his name is "Dave Ramsey". We are following his advise and in so doing have come a long way in our financial life. It sounds like you are already in trouble- and if they send your account to legal collections, so be it. But you may want to remind them that if they don't want to share the money you pay them, they may want to work with you personally and within the boundaries your budget allows. Please tune into Dave Ramsey or take a look at his website. He can help you far more than most of us can. Best wishes to you, I hope your health is progressing and that you are doing better. So sorry about the stress this is causing you.

Answer 10

Tell them what you have and plan to do and if they can't handle the terms, tell them to go away. They have to leave you alone if you tell them in writing. There are some bad things that they can do when you tell them to cease and desist, but they are the only legal recourse that they have.
Let them deal with you on YOUR terms.
Don't be bullied by someone that has been trained to be a bully. Tell them that you do not deal with creditors on the telephone either. Make them put it in writing.
Good luck.