One of the things that many people do when they are in debt is bury their heads in the sand pretending that everything is OK and hope that the debt problems simply go away. In reality, you may feel better in the short term by taking this action, but in the long run, all you are doing is creating more financial problems for yourself.
Speaking to your creditors is one of the best debt reduction tips that anyone can ever give you if you are looking to find a way to better manage your debt. If your credit card payments are $400 per month but you can only afford to pay $250, you are never going to meet the payments unless you are willing to sacrifice another bill. But this doesn’t help the debt management problem — it just means that you are making a circle of problems, replacing one issue with another while never solving the main problem.
If you were to phone the credit card company and say to them that you are currently having problems making payments, they can sometimes come up with a better payment plan. Perhaps extending your debt by a few more months and creating a smaller monthly payment. These companies would rather get some kind of payment from you than no payment at all, and for the most part, they will usually be willing to come up with a plan that helps you both. This can make the debt much more manageable. These companies and lenders are experienced in helping those who cannot pay, and although you may want to bury your head in the sand and ignore the bills that come week after week, it is just going to get you into more trouble.
This process of speaking with the creditors when you are having difficulty in paying your bills works for more than just your credit card company. You can follow the same process with your utility bills. You will find that most of the energy companies (and other similar companies) will be able to come up with a more workable plan for you and your budget. By making the effort to get the payments more manageable, you are taking a huge step toward debt reduction comapred to simply burying your head and pretending that the issues don’t exist.
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