How to Deal With Your Past Due Account

By: www.newhorizon.org

Are you having problems keeping up with your monthly credit card bills and/or loan payments?• If you are then, we’re certain that the constant reminders and harassing calls you receive from your creditors, demanding payment are starting to get on your nerves.

Is there a way to attain immediate relief from your financial obligations?

Yes there is: simply pay off your past due accounts, RIGHT AWAY!

Don’t have the money to pay even the minimum amount due?

Here is what you should do . . . .

Speak with your creditor. • Never try to hide or ignore a creditor’s attempt to contact you.

• You do not want to wait until your debts are in collections to start negotiations.

• If you work with the creditor they will lower your monthly payment for a while or even defer it for you.

• By being proactive you can avoid a lot of late fees, and since a repayment plan is in place, most creditors will not report you as late on your credit report.

TIP: Here’s what will happen if you will avoid your debt collector..

Work out a settlement.

• Before you start repayment, call them. • Work out a repayment schedule that you can comfortably make each month. • Ask them to remove the late fess.

Push the envelope.

• Don’t just ask for a little bit off.

• Start off asking for all late fees removed, reduced principal and removal of the negative item from your credit report.

• If you don’t ask, you never will get.

• The longer you haven’t paid on the debt, the more likely you are to get an amazing amount of the principal taken off.

Consolidate past due accounts.• If you are dealing with multiple debts, you may consider taking out a debt consolidation loan to pay off all your past due accounts. -- This way, continuous debt accumulation due to the monthly interest rates and late fees, can be avoided.

• If you are dealing with credit card debt, another way to consolidate credit card accounts is to apply for a new credit card with zero interest rate on balance transfers. -- Thus, you can concentrate on paying only your original debt without incurring APR charges each month.

File for bankruptcy.• Before you decide to take this path, you have to work with a credit counseling service.

• You can no longer just file bankruptcy on your own.

• The Agency will go over your financial obligations vs your ability to repay.

TIP: Guide in Filing Personal Bankruptcy

For more information:http://www.newhorizon.org/credit-info/how-to-manage-a-past-due-account/

If you want to consolidate your debt check our list of debt settlement services here:

http://www.newhorizon.org/Info/debtconsolidation.htm