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Creditors
are businesses that people owe money to, including:
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Credit
unions and banks |
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Retail
stores |
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Credit
card companies |
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Utility
companies |
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Landlords
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If
you are unable to make a payment on time or in full, contact the
creditor right away and explain your situation before a missed
payment becomes a problem or pattern.
Most creditors are willing to find a solution, especially
if you have paid your bills on time in the past.
When working with creditors:
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Keep
a written record of who you spoke to, when you spoke, and
what was discussed or agreed. |
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Write
to the creditor to confirm any agreement that was reached
during a phone conversation. |
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Stick
to the agreement and inform your creditor if a problem
arises. |
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If you ignore unpaid bills and loan repayments, a creditor may
turn your account over to a debt-collection agency. If that
happens, it will be more difficult to negotiate new terms and
conditions for payment. Communication with the creditor is
especially important on secured debt (i.e., auto loans and
mortgages), because the security can be repossessed if you default
on payments, which could mean losing your car or house. If you are
in danger of having your home repossessed, speak with your case
manager, a lawyer, or call the local housing authority.
This
information can help you prioritize which debts to pay and help
you estimate what you can offer if you negotiate new terms and
conditions on outstanding debt.
Download
the Creditor Worksheet.
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Continue
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