Already Drowning in Debt?
Even if you feel like you’re just barely getting by or like you’re starting to go under, there are plenty of things you can do to improve your situation.
Before you can get to a better place financially, you need to clearly chart your current position. Use your favorite budgeting app or just an Excel worksheet to track your current monthly income and expenses. You may be surprised what you learn about your spending habits. It’s likely you’ll identify places where money is being spent needlessly; money you can redirect to your benefit.
Contacting Your Credit Card Company Directly
Call and speak to an account representative. Explain that you are having a hard time making your payments. Try to work out a modified payment plan with lower monthly payments, request a reduction in your interest rate, and ask them for their suggestions and their help. The fact that you’re contacting them directly will be seen positively and as an indication of your desire and intent to repay.
Know Your Rights
You may be behind with your payments, but that doesn’t mean you have no rights. Be sure you understand what credit card companies and other creditors can and cannot do in attempting to collect money you owe them. The Fair Debt Collection Practices Act dictates how and when a debt collector can contact you.