Should I contact my creditors directly?

Many people think they should talk to their creditors when they are having financial difficulties. While this may look like the obvious thing to do it may not be in your own best interests to contact your creditors. Your creditors want to be paid. If you inform them that you have financial difficulties this will immediately raise a red flag on your file. 

Depending how your conversation goes and what the creditor perceives your historical relationship with your creditor will change. 

Be warned!  

You’re creditors sole purpose is to be paid in full the amount of debt you owe. One of the first things they will do is obtain a current credit bureau report to investigate your current credit history with all your creditors. 

  The more unprepared you are in any conversation with your creditors, or their
      representatives, the more concerned your creditors will be. 

  Don’t offer to pay more to aggressive creditors leaving yourself short for your
      other creditors. 

  Don’t offer any creditor an amount you cannot afford. 

  Don’t offer or pay any creditor a settlement amount unless you receive an
      agreement in writing, signed by the creditor, describing the terms of
      settlement.
 

  Don’t apply for new credit while contacting your existing creditors as this
      information will show up on your credit bureau report.
 

  Don’t contact any creditor without a detailed plan for repayment. 

Contacting your creditors when you are unprepared may cause any one of your creditors to commence collection of their debt, or legal action leading to wage garnishment, or seizure of your assets, including money in your bank account.