Introduction

What is it?

Make arrangements with your creditors is way to help you spread the repayment of your debts. This is so, once you have established a list of your creditors to contact them and offer them a reduction in your payments, an extension of the repayment period of your debts or a reduction in your interest rate (or three). You can also assign this task to a counselor from a debt management program (see the following management program).

The budget you have prepared will allow you to make clear to your creditor that you are actually able to pay until your situation improves. Be realistic, do not make any proposal that you can not comply. Often creditors agree to negotiate because ultimately they want to recover the money you owe them. 
Important - Remember that your creditors are under no obligation by law to make special arrangements with you and they are also not required to comply. This is a voluntary measure from them.

By communicating with your creditors, you can try:

1. To spread your payments over a longer period, reducing the minimum amount you must pay each month;
2. To negotiate a lower interest rate, which should also reduce the amount you have to pay (some credit card companies offer cards with low interest rates - must ask);
3. To obtain a delay in some payments;
4. To request decreasing your total debt (well, you have $ 5000 but you offer to pay cash $ 3000 immediately, money that comes from such a tax refund). If you get along with your creditor on this type of refund, please request written confirmation of the terms of your agreement (that is to say you paid your debt and you do not owe anything to the creditor).

It is possible that the financial institutions that issue credit cards require to suspend the use of your credit card or even that you withdraw. Be flexible and open. You are in no position to refuse and, anyway, if your credit card is at its maximum, you can not use it.The volunteer your credit cards not in use can prevent you from being tempted temptation to add new debts to it (on which you also have to pay interest). Therefore avoid using your credit cards will benefit your financial situation and you will better meet your budget.