For many people, keeping up with essential living expenses is hard enough let alone make payments to creditors. When finances become tight the threat of debt default becomes all too real. While you may not be able to pay your debt, there are some strategies for avoiding some of the consequences of default:
1. Pay something — even if you can’t afford the minimum payment, pay some amount. Missing a payment altogether is only going to put you on the watch list and add in penalty fees to your account.
2. Contact your creditor — many creditors are willing to negotiate a payment plan, especially to those who are still considered current. Contact your creditor at the first sign of financial hardship to discuss ways to alter your payments.
3. Offer to set up automatic payments — creditors are also more willing to negotiate a payment plan if y you set up automatic payments. They will have the guarantee of payment while you benefit from the negotiated lower payment terms.
4. Cut expenses or boost income — to the extent possible, find a way to free up more cash by eliminating an expense or earning more income. Use this money to pay down your debt and keep you out of default.
5. Ask for help — if you cannot obtain a modified payment agreement or simply cannot afford to make your payments, speak with a Dayton bankruptcy lawyer. A lawyer will be able to review your options, put collections on hold, and stop default while you secure a plan that works for you.