Tips For Improving Relationships With Your Creditors
Monday, December 26, 2011, 2:00 AM | Leave Comment
In this lousy market, many more folks have been contacted by creditors – credit cards, mortgage, bank loans and the like – in recent days and months. These good folks, because of the circumstances that are mostly not in their control, have been late in their repayment of loans. Here are tips to be proactive in contacting your creditors and lenders and be open about your financial situation.
Creditors
Improving relation with creditors should be your top priority.
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Prioritize whom to pay first. For example, IRS must be at the top of the list. Then comes your bank, landlord, etc.
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Complete a cash flow forecast before setting a payment plan. Forecasting for tomorrow is just as important as knowing where you spent your money yesterday. If you can’t see what your financial future looks like, then you are more likely to make bad decisions on what you can and cannot afford. Adding forecasting would be a huge move in the right direction.
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Talk to the essential folks who are in the position of decision making and keep in constant touch with them.
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Most creditors would let you make partial payments. So talk to them about that.
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When you make payment promises in writing, you must come up with ways how to keep them.
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Renegotiate existing loan terms so you can manage your payment better.
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Consolidate debt with one company. Do a thorough research online and offline. There are more bad ones than good in the industry. Find and talk to a good financial adviser.
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Request interest only payments if worse comes to worst.
Past due taxes
This can get real nasty if you don’t take care of it immediately.
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Contact all agencies immediately
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Respond to tax collection letter promptly
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Complete cash flow forecast before agreeing to a payment schedule as stated above. Follow it through.
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Use sites like Quicken Online – Free, easy money management or mint.com – the best free way to manage your money for help.
In a Nutshell
Look for some flexibility in your financial life. The only way you can expect flexibility in the attitudes of creditors, lenders and tax collection agencies is to be flexible yourself. Hopefully, you can compromise with these entities in your best interest.
