By reviewing your budget, you will be able to see if reducing the monthly payment for a single debt is enough to get your finances in order. If so, it won't be necessary to contact all of your creditors. However, if a payment reduction from just one creditor doesn't quite get your head above water, you could choose to contact all of the creditors to whom you owe the largest amounts of money. This will have a greater impact on your monthly budget.
You can probably make new payment arrangements for all types of debts except mortgages.
Mortgages may sometimes be eligible depending on the financial institution and on your financial situation.
Some lenders offer a mortgage payment relief period of up to six months if your circumstances qualify. Phone and ask.
TEST THE WATERS FIRST:
Call all your creditors, and without revealing your identity, ask if they have a program whereby debtors can negotiate a better deal. Find out who to call.
PICK THE BEST PROSPECTS
Use the list of debts you made up since it includes a complete list of your creditors, account numbers, account balances, monthly payments and payment due dates,
It will help you plan your proposal. It will help you determine who you should pay and when, as well as what commitments you are able to make.
MAKE A CLEAR PROPOSAL:
Make a clear proposal, based on your budget and how much you are actually able to repay.
Clearly explain your financial situation to your creditor so that they fully understand your situation. The key to success is to show good faith and your commitment to repay your debts.
Remember they know from your credit report exactly how much you owe them and others. Do not mislead them It will not work.
ASK THEM TO SEND YOU A WRITTEN AGREEMENT:
It is advisable to get a written confirmation of the agreement. You can prepare a brief summary of your telephone conversation and send it to the person you spoke with (by fax or by registered mail).