If you ignore your creditors, they may assume that you are avoiding paying and have no plans for future payment. You should call your creditors and let them know you're having problems paying. The worst that can happen is that they will continue demanding payment. But sometimes the creditors may be willing to work with you to lower your payments for a while.  

If you and the creditor agree, a payment plan could lower what you pay each month for a period of time. A creditor might agree if they see you cannot pay your original payment amount. Please keep in mind that if you enter a payment plan, you may have more manageable monthly payments, but you will also likely end up paying more money in additional finance charges. Keep in mind, the faster you pay off your bill, the less finance charges you will have to pay.

Sometimes creditors are willing to work out payment arrangements through organizations known as Consumer Credit Counseling Services (CCCS). A CCCS will look at your income and expenses. If CCCS thinks you have enough income, they will put you on a budget.

A CCCS will also try to work out payment arrangements with your creditors. Assuming your creditors agree to an arrangement, the process works as follows:

1. You send the CCCS a check for a certain amount each week or month. 
2. CCCS will divide your check up among your creditors. The creditor will pay a fee for this service. Many creditors prefer to work with you and receive some payment instead of not getting anything.

Finding a Consumer Credit Counseling Service (CCCS)

There are many different Consumer Credit Counseling Services (CCCS) groups out there. 

The National Foundation for Credit Counseling (NFCC) is a CCCS national accreditation group. The National Foundation for Credit Counseling (formerly known as the National Foundation for Consumer Counseling) makes sure that all of its members maintain certain standards for the benefit of the people who use its services. All of the member agencies of the NFCC are non-profit, community based groups that offer money management, education programs, and confidential credit counseling. Most offer services at no or low cost. 

If you wish to contact one of their agencies, you can call the NFCC at 1(800) 388-2227.

Please be aware that there are many for-profit credit counseling companies that charge excessive fees, take advantage of consumers, and do not provide consumers with any real benefit. For example, if you use one of these unreputable companies, they may:

• Take your money but not pay any of your creditors;
• Not send your payments ontime; or
• Steer you into a debt-management program when bankruptcy might be your best option.

It is very important that you research any credit counseling company to ensure they are not one of these fraudulent businesses. Finding the CCCS through NFCC is a good start to finding a reputable company. Also, some good questions to ask the CCCS before you sign up for its services are:

• Will the agency refund fees if the services are not satisfactory?
• How much training do the counselors receive?
• Does the agency keep client funds in a trust account?
• How long has the agency been doing business in the area?
• How long will it take to complete the program?
• What effect will working with the counselor have on my credit rating?
• Are agency services confidential?

Past due notices

If your creditors won't make a deal with you for a payment plan, your creditors will start to send you past due notices. They may send you threatening letters or call you to demand payment or sometimes the creditors will do both. Creditors cannot force you to pay (without going to court) or send you to jail, but they will continue to contact you. Creditors can report you to a credit bureau which will lower your credit score.

Your creditors may eventually send your account to a collection agency. The collection agency will also try to get you to pay the bill.