Trouble Paying Your Bills?

If you are having problems paying your bills, contact your creditors immediately. Try to work out a modified payment plan with them that reduces your payments to a more manageable level. Dont wait until your account has been turned over to a debt collector.

Here are some additional tips for solving credit problems:
  • If you want to dispute a credit report, bill or credit denial, write to the appropriate company and send your letter return receipt requested.
  • When you dispute a billing error, include your name, account number, the dollar amount in question, and the reason you believe the bill is wrong.
  • If in doubt, request written verification of a debt.
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  • Keep all your original documents, especially receipts, sales slips, and billing statements. You will need them if you dispute a credit bill or report. Send copies only. It may take more than one letter to correct a problem.
  • Be skeptical of businesses that offer instant solutions to credit problems: There arent any.
  • Be persistent. Resolving credit problems can take time and patience.
  • There is nothing that a credit repair company can charge you for that you cannot do for yourself for little or no cost.

If youre not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says its nonprofit, theres no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make voluntary contributions that only cause more debt.

Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

Courtesy of the Federal Trade Commission. Source:
http://www.ftc.gov/bcp/conline/pubs/credit/crdright.htm