What is the best way to handle your creditors?
You will need to look at things from the creditor’s point of view to understand why they react the way they do when you haven’t paid your account.
They have given you a product, or service, that has cost them in time or money and they expect you to pay for that product or service in return. They are trying to run a business and for all you know they might be faced with financial difficulties themselves. The bottom line is that they rely on their debtors paying on time to cover their own expenses.
If you are faced with a situation where you can’t pay your creditors, you need to contact them as soon as possible to explain the situation and assure them that you will pay the account as soon as you can. You need to make them feel satisfied that they will be getting their money even though there will be a delay. You should also explain that the delay because you have no alternative.
“Waste your money and you’re only out of money, but waste your time and you’ve lost a part of your life.”
– Michael Leboeuf
Communication may reduce the chance of creditors taking legal action against you to recover the money. It may make them feel a little more at ease having heard from you than for you to remain silent and keep them in the dark. For all they know, you have no intention of fulfilling your debt. Letting one month drag into the next when your account hasn’t been paid will only frustrate them even more. They will probably become ever more frustrated at the fact that you are not responding to their repeated requests. In this case, they may feel that legal action is the only option.
Treat them as you would hope to be treated yourself if you were in a similar situation. What if you loaned a friend or family member a significant amount of money and all of a sudden that person just stopped responding to your inquiries!?
Remain in contact with them on a regular basis even as you are paying off your debt to assure them that full and final payment will be coming. Hopefully, this will help to build some form of trust between you and your creditors and they will begin to understand that you are making a concerted effort to clear your account.
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Disclaimer: I am not a financial professional and don’t play one on tv. The information provided on Single Mom on a Budget.com is my own opinion and should not be construed as fact or advice, and you follow it at your own risk. You are responsible for your own personal finances and should not rely on this site to make the final decision for you. This blog is my means of communicating my experiences to you and to prompt you to think and consider your own situation, but you are 100% responsible for any actions you take. Always consult an attorney or tax professional regarding your specific legal or tax situation.