Communicate with the people you owe; it’s a win-win for everyone

I think by now it is safe to say that almost all of us owe someone for something out there.  Thus we should all have a goal of living debt free or as close to it as possible. There is one thing that can really make a difference when it comes to your creditors.  This works for both business owners and in your personal life. 

The easiest thing to do is not to answer your phone or ignore the attempts of the bill collector/creditor to contact you.  It surely can work some of the time and it temporarily makes it easier not to have to worry about the problem at the present time.  I don't think any of us like talking to a collector because most of the bill collectors can be rude and obnoxious. 

What is funny is that when you actually do talk with the creditor you feel much more at ease and relived (most of the time).  The ultimate reason for this is simple, the anxiety of putting this person off only builds and you know at some point you will have to deal with them and the problem and it only adds to their anxiety on the other side. 

The best thing to do when you owe someone money and you are having a difficult time is to simply give them a call.  Let them know your situation, let them know that you are having a tough time and that you don't have any money right now.  Tell them when you might be getting some money, or even if you can send them something; $50, $10 anything.  You will find this communication goes along way in developing trust. 

Here is one better; put on your calendar for every Monday to give each person you owe a call.  Beat them to the punch so to speak.  I can assure you that they will be surprised, and there isn't much more they can tell you that you haven't already heard.  Even if you are just telling them that you still don't have any money nothing has changed but you just wanted to keep them updated.  They will be actually just as relived as you are for the call. 

Try to make a plan that gets them paid off, work that plan and they will work with you.  Even if the plan to pay them off takes longer than you think it should, at least you are making an effort to take care of your creditors. 

I was speaking with a guy the other day that used to work for Ford Motor Credit Company.  He was telling me how they used to hate calling people every month that would blow them off, hang up on them and just avoid their calls.  Ninety days later they would finally get a call from the debtor and the funny thing is he was telling me all they had to do is give them a call and Ford would have done everything they can to work something out.  He said they usually would require one payment and then give them a 90 day extension.  All they had to do is communicate with them. 

So, here's a simple strategy for the day.  Communicate with your creditors and it's a win-win for everyone involved.