No matter how well you plan for the future, you can't be prepared for everything. If you are experiencing a job loss, illness, or have become overextended with credit, keeping up with loan and credit card payments can be difficult. We realize that talking to creditors about financial challenges can be a tough prospect to face. Before talking to a creditor, it may be helpful to prepare yourself with the information you may need for the conversation. You should have the following information available for the call:
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If you’re calling to discuss a current account or loan, be sure to have a current statement on hand. This should include the balance you owe. Before you call check the creditors’ website as they may list the information they would like you to have when you call.
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Creditors need to understand the facts about your current situation. For example, if there's been a disruption to your household income, your creditor may ask if it was due to a lay-off or other disruption. If you are an active-duty service member, you may be eligible for benefits and protections under the Service members Civil Relief Act (SCRA).
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Spend some time examining your financial situation before you call. How much can you afford to pay toward your debt each month? When will you be able to start paying the full monthly minimum payment again? Lenders want to discuss these specifics. You may also want to ask for additional assistance, if necessary, such as reduced fees or deferred payments.
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When speaking with creditors, ask for a confirmation in writing of what was agreed to on the call. Determine if you need to follow up with a letter recapping your information and the option discussed, including any necessary supporting documentation like proof of unemployment.
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Dealing with financial challenges can be stressful. Multiple creditors may mean multiple conversations, providing the same information to each respective creditor. When talking with your creditor, keep calm by focusing on the facts.
Tip
If possible, try to have a recommendation on a specific dollar amount you can afford to pay each month.
Being proactive and taking the time to prepare can help make these conversations with your creditors easier and more efficient.
