Difference between revisions of "You Have Options for Getting Out of Debt"

Another thing you can do is contact your creditors, outline your situation, and ask them to suggest ways to help solve your problem. They may agree to a better deal that still lets you pay your debts, for example, by charging a lower interest rate, writing off interest or giving you more time to pay.  Be careful about agreeing to repayment schedules that may be too difficult. And make sure you’re not borrowing more money or putting off other creditors – and getting charged more interest – just to satisfy the creditors taking action against you.

A debt management program involves a written agreement between you and the lender, with the help of an agency such as the Credit Counselling Society of BC (their contact information is given at the end of this script). Typically your debts are consolidated, or combined, into one affordable monthly payment so you can repay them in a reasonable time. Creditors usually support people who enter into debt management programs by reducing or eliminating interest charges.