Ask Your Creditors For Help
Many people don’t realize that creditors are usually willing to work with you, especially if you are dealing with a financial hardship. Explaining that you are unemployed, earning lower wages or facing the cost of a medical emergency may result in an offer to waive your interest rate temporarily.
McClary says the best time to go to creditors for help is before the situation is out of control. Don’t wait until an account is about to be closed because you’ve had several months of late or missed payments. Tell the creditor you’d like to pay down your balance faster and want to know what services are available to help you manage your debt better.
“Those are conversations that, having been on the creditor side of the call, I can tell you don’t take place enough,” McClary says.
Consider Credit Counseling
If you can’t seem to come up with a viable debt elimination plan, turning to a nonprofit credit counseling agency may be the answer. These organizations provide services either free or at low cost to help clients get out of debt.
A professional credit counselor can help you review your debt situation and identify repayment options and money management techniques that you may not have thought of on your own, McClary says.
NFCC, a nonprofit financial counseling organization, has a credit counselor locator to help you find assistance in your area. Call 1 (800) 388-2227, or go to NFCC.org to find the online locator.
This article was originally posted on Bankrate.