How about learning some debt control? Articles | Personal Finance

So now you are in debt and getting behind on your payments. There are a few tips to keep in mind when dealing with this situation and remember creditors would rather get something back versus nothing at all. They will continue to try to retrieve their money, so instead of being hounded by creditors take these actions into consideration instead.

1. Always staying in contact with debt collectors and creditors will let them know you are trying to work towards a solution and that you are an active participant in resolving the credit matters. Negotiating will always be in their best interests so keep in mind what is best for you.

2. Once you have a copy of your credit report, hold on to this for future reference. That way you can always refer back to it to see what progress you have made. Being able to check off the companies you have taken care of and which ones you still need to settle with will keep you organized and make taking care of the situation easier.

3. There are three different ways to negotiate with the creditors. There are payment reductions, extensions, and permanent reductions. It may take longer to pay off, however at least you will not be getting behind.

4. Get the interest lowered, not just the payment. Having a high interest rate works great for the creditor, bad for you. The problem usually is the interest and not being able to bring the balance down because the interest is so high. Get the interest lowered, which will in turn lower the payment.

5. Look at debt settlement also. Sometimes instead of paying off the entire amount the debt can be considered paid in full when you paid half or less. Some creditors will agree to these terms because as long as most of the payment is principle anyway, they are getting their money back and have only lost some of their interest.

6. Do what is best for you not the creditors. There will be a lot of pressure to back money they you just do not have and make payments that you cannot meet. Doing this will only get you further into debt, compromise, but do what will work best for you, not them.

7. Lastly, know what your rights are and what creditor’s area allowed and not allowed to do. They may try to bully you or use unfair and illegal tactics because so many consumers don't know their rights. Be informed and communicate fairly.

Working with the credit agencies, companies, and businesses to pay back your loans and debt is the best route to take. Starting there will get you farther than letting things fall behind and accruing huge fees and interest, which will only compound the problem. Also, there are some types of debt and loans that will be harder to work like mortgages and car payments. Cars will be reposed and homes the banks will try to work with you because they are not in the business of selling homes, but selling mortgages. You do want to be careful because the repercussions are much larger and costly. Using the same tactics and tips of communicating the problems and talking with lenders will get you farther than doing nothing at all.