You can't pay your bills because you simply can't make ends meet. Sooner or later, your creditors hand over the outstanding bill to a debt collection agency or lawyer and your debts have doubled or tripled. To prevent this from happening, you really only need one thing: honesty.

 

First of all, you need to understand that there are people like you behind every bill; most of them even know this tricky situation themselves. Therefore, the most important thing to do when you can't pay your debts is to communicate with the other side. Get in touch with the creditor BEFORE they get in touch with you so that you are not on the defensive. This will show the other party that you are active and making an effort to improve the situation. Explain to the creditor how things look financially, but that you will make a repayment plan. This brings us to the next point: make a repayment plan that suits your financial situation and that you can honour. To show that you're serious about repaying your debt, pay SOMETHING, even if it's little. Show willingness to pay. If you have several creditors at the same time, pay them all a little.

Draw up a repayment plan and communicate this with the creditor so that they know what to expect.

Now it's just important that you stick to your plan. Keep your promises, otherwise you will lose your credibility and meet with less understanding next time.

 

Summary: To get out of debt, follow the advice below:

 

1. prompt communication with the creditor.

2. down payment to show willingness to pay.

3. create a payment plan.

4. keep promises.