If you’re out of a job and behind on your credit card payments, it might be very tempting to stop taking calls from your credit card issuer and their collection agency. But that’s not the best way to handle things. Even if you don’t have a penny to give them, it’s a bad idea to ignore the problem and hope that it will go away. Here are five tips to remember when you pick up the phone and get in touch with your credit card issuer.
Tip 1: They Don’t Know What You Don’t Tell Them
As unlikely as it may seem, banks do want to work with their customers. Many have instituted special programs for customers who are behind on their credit card debt and facing tough financial times. Call your credit card company – preferably before you default, but definitely if you can’t make payments – and see what they can so for you. If you simply stop paying, they won’t know that you’re facing special circumstances.
Tip 2: Tell It Like It Is
Tell the collector that you’re unemployed and cannot afford to make payments at this time. That’s really all they need to know. If they push you to set up a payment plan, cut in and tell them you’ll call back when your situation improves.
Tip 3: Keep Written Records
Make a note of the date and time when you called. Also take down the first and last name of the person you spoke to, and a summary of what was said during the call. If any collector harasses you or does not adhere to the rules for debt collection, keep records that you can refer to if you decide to go to court.
Tip 4: Plan for the Future
Right now, getting an income is more important than setting up a payment plan with a creditor. Of course, late payments and closed accounts will hurt your credit score, but sometimes you have to make hard choices. Focus your energy on finding a new job rather than fighting with debt collectors.
Tip 5: Pay What You Can Afford
When you’re back on firm financial footing, call the collection agency and make an attempt to settle the debt. Some will settle for pennies on the dollar. Others will resist your efforts to negotiate a lower pay-off. Offer them a lump sum or monthly payment amount that you can reasonably live with. If they refuse, get a qualified credit counselor to deal with them.
