Payment Arrangements
In times of financial stress, emergency and extenuating circumstance,
it may be necessary to make special arrangements with creditors.
If you cannot pay a debt as agreed, generally it is advisable
for you to talk to the creditor to try to arrange to make affordable
payments. If you explain in advance why you cannot make the payments,
the creditor may be much more willing to let you make partial payments.
Even if you cannot pay the entire payment owed, you should a least
attempt to make partial payments. Although the creditor is not
obligated to accept partial payments and generally could still
take legal action, many creditors will accept partial payment and
it is in your favor to do so.
STEPS TO MAKE PAYMENT ARRANGEMENTS:
- Contact Creditor. Write down time, date, number called,
name of the person you spoke to, their position, department,
etc. Also confirm the payment address, account number, balance,
accruing fees/charges, etc.
- Be friendly, courteous, and honest. You gain nothing
by responding negatively to a creditor, even stay calm and restrained.
- Agree to reasonable yet realistic payments. Do not
make promises you cannot keep. Even if a creditor states that
the payment you propose will not be accepted, it is better to
follow through by sending the payment rather than not sending
anything at all.
- Confirm the discussed payment arrangements in writing. Keep
a copy. Send certified mail and keep receipt of delivery. Keep
copy of verification of payment (i.e. cancelled check, money
order receipt, check carbon and corresponding bank statement,
payment receipt, etc.)
- Be consistent. Make your payments on time and in the
amount agreed.
It may take a month or more before your agreement is recorded
in the creditor's computer. You may continue to receive telephone
calls or demand letters. Keep a copy of your letter of agreement
on hand. When someone calls, be friendly. Review the letter.
In response to continued demand letters for payment, enclose
a copy of the agreement letter and return it to the creditor.
It is also advisable to enclose a copy of your letter each month
with your payment.
Make sure the creditor is fully aware of the reasons for the delinquency
or default, and make certain that the creditor knows if income
is from public assistance, unemployment, pension, or social security.
In all cases, try to demonstrate an attitude that you are trying
to alter the situation that is causing the problem and give the
creditor reasonable hope that this problem will be resolved as
quickly as possible.
The above information should be understood to be a general
discussion of the subject matter and DOES NOT constitute
a legal opinion about the situation. For further information
please consult a qualified attorney.
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