When a person accumulates a lot of debt, they will find it is often times hard to get out of it without seeking advice from others. Based on the amount of debt and what it will affect, the person may need professional guidance to get things back under control. It is best, however, to deal with these problems before they snowball into the destruction of personal credit or bankruptcy. The debt can be managed by contacting each creditor to see if they are willing to work with the person. This tactic is considered to be one of the first lines of defense and it has worked for many people.

However, when contacting each creditor, it is best to remain both pleasant and calm. Sometimes the creditors are not willing to work with people who do not address the issue in a professional manner or tone. It will help the person’s case if they will treat each creditor with the proper respect.

When contacting the creditor, the person should also be ready to state and focus on the facts surrounding the situation. Although the person may be experiencing problems due to a family emergency, it is best to leave out the emotions and stick to the business at hand. It is also better to call the creditor at the end of the month because they want to clear as many accounts as possible before the month ends.

If the creditor is not willing to work with the person, they can simply remind them that they have option of paying the loan off early by borrowing the money from another loan agency. This tactic is effective because they do not want to lose the interest. Many times if the customer pays the loan off early, they will lose years of interest payments to another agency. Also, as the bills pile up, the individual may not know how to prioritize the bill payments. They do know that they will need to start paying them off but they do not know which ones should be paid first.

Therefore, the first bills that should rise to the top of the pile are the accounts with large balances. The next group of bills that should be paid are the accounts that have the largest minimum monthly payments. Unfortunately, the bills with highest interest rates are the bills that will be the hardest accounts to pay off.

By: Mark J Gregory

http://www.moneymatterswest.co.uk/