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sometimes a lost job a medical emergency or one big unexpected expense can suddenly make it hard to make ends meet if you're in a situation where you cannot make payments on debts or bills you owe or your creditors are beginning to call you need to take action now and fortunately there are solutions that can help you get on the right track in fact you may be able to negotiate with your creditors the companies or organizations you owe it may seem intimidating but remember that creditors may be open to work with you to find a solution that will work for both of you here are a few tips on how to negotiate with your creditors this process may take multiple phone calls and some paperwork but if you put it off it could get worse before it gets better taking action now could save you money and stress in the long run the first step is to get organized before you contact or respond to your creditors take some time to gather and go over all of the paperwork you have related to your current debts things like your original loan agreement payment history and any late payment notices if you're missing some of your documents you can usually get copies from your creditor either from your online account or directly from a representative negotiating with creditors can be an overwhelming time-consuming and sometimes frustrating process it's going to take patience and persistence having all of the information you need at hand can help you stay focused and be prepared for your conversation before you call your creditor take some time to figure out just how much you can afford to pay each month look at all of your necessary expenses and bills and if there's been a major change in your expenses factor that into the equation as well look at your expenses alongside your net income or take-home pay to determine what you can actually afford to pay once you have it figured out write it down and hold on to it for later it's important to be realistic about what you can actually afford to pay each month toward your debts while you may want to agree to pay off a difficult debt as quickly as possible doing so could get you in more trouble if your debt payments come at the expense of your necessities now if you have multiple debts that you are unable to pay you have more planning to do figuring out how you plan to tackle your debts can be complicated and will depend a lot on your individual situation what's important for you could be renegotiating the pain terms of the debt with the largest monthly payment so you can free up money for other expenses or it could be paying down a debt that's gone to a collection agency making sure you can cover your payments on an auto loan or mortgage may be most important if it helps you avoid losing your car or home finally understanding how your choices impact your credit history will also be a factor once you have all of your paperwork and have figured out what you can afford to pay you're ready to speak to your creditor on the phone creditors may tell you that you must pay the full amount you owe but know that this might not be the case explain that you cannot afford your regular payment and briefly describe the reasons you are unable to pay simply being honest about your situation may work in your favor once you've explained your situation ask the representative if it's possible to change the terms of your repayment to the amount you can actually afford they might be able to offer you a longer repayment period which will reduce your monthly payment to an amount that is more manageable for you or they may be able to offer you a lower interest rate and depending on the circumstances your creditor might be willing to accept less than the total amount you owe but make sure you fully understand the repercussions if they settle for a lower balance it could show up on your credit report and it may impact your ability to apply for new lines of credit in the future if you've accrued any late fees from missed payments ask if they'll be forgiven some creditors might forgive fees if it means you'll agree to make your monthly payments take notes during your conversation including the date and time of the call and the name of who you spoke to and be sure not to agree to a loan payment that is higher than you can afford to pay when you come to an agreement be sure to get it in writing ask the representative to send a letter that outlines the new terms of your payment when it arrives to review the document closely to make sure that the agreement is correct and that no terms have been added or left out that you haven't agreed to if everything is correct you can begin to make your new payments if there's an error make sure to call your creditor back to discuss your agreement again and make sure you get a copy of the new agreement before proceeding with your payment's it may be best to try to negotiate with your creditors on your own first but if you are feeling overwhelmed have many to repay or are having difficulty making progress on your own there are a few other options nonprofit credit counseling services can provide you with assistance they offer free information a full financial review that is unique to you as well as workshops on how to manage your debts and what actions you can take to negotiate with creditors the Federal Trade Commission has tips on how to find qualified credit counselors and avoid scams and the National Foundation for credit counseling lists reputable nonprofit credit counseling agencies on their website additionally the Consumer Financial Protection Bureau has many resources online that offer tips on how to respond to your creditors and information about your rights there are also some for-profit agencies and organizations that advertise that they can negotiate with your creditors for you to significantly reduce what you owe or they say they can consolidate your debts so you have only one payment but be skeptical some of these organizations might not have your best interests in mind they may charge high fees or lock you into repayment plans that could cost you more in the long run it's best to make sure you're communicating with a non-profit or government run organization and that you ask about any fees or costs for their services upfront before you begin working with them after a few months have passed check your credit report as you get back on track with your payments your creditors are required to report that your debt is being paid according to your agreement it's a good idea to check your credit report to ensure that your account has been updated as being repaid or settled getting behind on your payments can be overwhelming but speaking with creditors as soon as possible to find a payment solution that works for you can help you get back on your way to a stronger financial future you