Debts Affecting Credit History

Question: Dear Cynthia: I am facing mounting debt from my Christmas shopping and I am not able to pay all the bills by their due date. How can I handle this situation without it affecting my credit history or at least minimize the effect?

Answer: As soon as you realize you won’t be able to make regular payments, call or write your creditors. Offer to make smaller payments for a specific time period. Ask them not to report your account as late to the credit bureaus as long as you meet the new payment schedule. If you feel pressured by a creditor to pay more than you can afford, call back later and speak with someone else, or ask to speak with a supervisor. Put your agreement in writing.

Source: Dollar, P. (1999, January 28). Talking dollars make $ense. The Independent Journal, p. 1B.

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