Once you miss a payment, your creditors will start calling you and demanding money. If you don’t have the money, however, repaying your creditors simply isn’t an option.
In this video, a certified public accountant discusses how to speak with creditors. She says it’s important to stay current on utilities, auto loans, and any debts that are set up against assets. If you can’t pay off your credit card, medical bills, or other unsecured debt, simply let the creditor know. The sooner you come clean to your creditor, the better chance you have of negotiating a repayment deal.