Communication: The First Step To Better Credit
The holidays can be a tough time for many people, especially those who tend to over compensate for what they lack by spending more of what they don't have. Inevitably the New Year rolls around and you're left holding the empty bag.
The first few months of the year tend to be the toughest for those who have spent too much, but 2006 will be particularly challenging for many as the minimum payments due on credit cards balances will be increasing upwards of four to five percent.
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Before January comes and you make yet another resolution list, commit to communicating with your creditors. Don't start the year worrying about your debt. And don't feel like you have to go it alone. Many people experience financial difficulties from time to time. What makes a world of difference is how you choose to handle it.
Overspending 'the only reason more and more consumers are credit crunched, rising gas and housing prices, an unforeseen lay-off or a prolonged health problem could be one of many reasons for financial pain.
So what should a person do if they find themselves in a credit jam?
Communicate. It's that difficult and that simple. I can tell you first hand how not talking to just one creditor cost me more than $1,900. I was so afraid of what they would say or "do" to me that I refused to have a conversation because I knew I didn't have the money.
When the situation escalated to a pending judgment I was forced to talk and in the conversation I learned that they had documented several attempts to work out payment arrangements with me that had gone unanswered. I had no defense, and my choice to clam-up rather than communicate cost me big time.
Contact your creditors and communicate the problems you are having. This can not only help you to relax, but in most cases you can work out a deal for payments in the future and avoid additional late charges and fees.
Contrary to common belief, creditors really don't want to go through the hassle of hiring lawyers and collection agencies, and they do care about preserving customer relationships. If you are willing to talk to them, they are willing to help you make arrangement for repayment.
The bottom line is, you are in a relationship with your creditors whether you want to acknowledge it as such is not the point. The point is that just like with all of the other relationships you are involved in, they work best when the lines of communication are open – both ways.
If you have tried talking to your creditors, and are still having trouble with payments or no matter what you've tried your creditors are still giving you a hard time; then you'll want to consider contacting a non-profit organization that can give you professional financial advice.
I suggest a non-profit organization because they have no intention of making money off your financial difficulties, their job is to provide you with information and support.
So if you find yourself in more debt than you can handle and the pressure to pay is getting too intense, contact your creditors and communicate the situation. You should also research your debt-relief options and ask for help from one of the many agencies available and willing to help.
