If you find yourself in debt and unable to pay what you owe, it is vital that you contact your creditors and attempt to negotiate a solution.

The Full Story

Be honest with them and explain your situation fully. Personal circumstances change and the people to whom you owe money know and understand that, but they will want to be reassured that they are fully aware of your situation. They will ask you questions and may want to see evidence that supports your answers. If you are ill, they may ask to see a doctor’s note, if you are unemployed or your income has gone down, they could ask for pay slips.

How much?

Before you contact any creditors, work out exactly how much you can afford to pay them and don’t be persuaded to agree to paying more. It is important to ask them to freeze the interest on your account, because if this doesn’t happen your debt will continue to grow.

A Cool Head

Avoid confrontation and keep calm when talking to your creditors – they are under no obligation to accept your offer, so it is in your best interests to remain polite. You may need to talk to them several times before you get agreement to your offer, so it’s important not to get frustrated.