Understanding Credit
Section 8 - Communicating with your loan servicing company
When you run into an unfortunate financial crisis, this is the time to communicate with those companies to
whom you owe money. This is not the time to try and run and hide due to embarrassment or thinking if they
cannot talk to you then they cannot hurt you. While many companies will not enter into any type of reduced
payment plan until you stop paying, it is very important for you to open the lines of communication so the
debt holder knows you are not trying to avoid your financial obligations. When they know you care about
paying your bills they will listen as you try to distribute your available cash in a fair manner. Obviously,
the length of time it takes to resolve the financial crisis and the severity of the cash flow problem will
dictate what type of plans you can realistically negotiate. Do not enter into any arrangements that you
cannot meet. It is better to agree to pay $100.00 that you know you can do than to continually try to explain
why you are failing to keep your promises of paying a higher amount. In order to work out these issues, it
is extremely important to show your credibility to the debt holder by keeping whatever promises you make.
While they will be trying to get as much money as soon as they can, they will respect you if you explain the
situation honestly so they know you are not trying to short change them but merely trying to partially meet
as many obligations as possible.
Section 9 - Financial Responsibility - take it seriously
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