Unfortunately, sometimes we just don't have enough money to pay a particular bill. When faced with such a dilemma, many of us simply act as if the situation didn't exist.We throw out the bill or ignore it altogether, as if by doing so would make the matter disappear.We need to understand that creditors do not want to punish you or send you to jail. All they want is their money, which they'll have no hopes of getting if you're locked behind bars. So what do you do in such a situation?
Believe it or not, you call them. Tell them exactly what your situation is. Explain that you are a regular customer and that this month things are a little tight. Ask if you can either skip the payment or make aminimumpayment. Most creditors will be happy to arrange an easy set of terms for you. Our fear of creditors stems from the more common experience of their chasing us down - a situation that requires them to spend more money just to get out of us what is rightfully theirs. Of course they're angry. You would be, too, if you had to play hide-and-seek with your boss to get your paycheck. If you take the initiative to contact creditors first and explain that you can't pay at the moment but you'll be back on track soon, you're showing yourself as more responsible than those who simply avoid their financial obligations. Your words will bemusic to their ears because they won't have to use a collection agency, which would only eat away at their profit.
It's hard to believe, but businesses dislike using collection agents even more than you dislike receiving their phone calls. After all, the collection agency gets to keep approximately one third of all the money it recovers from the customer. Not only that, but you the customer resent being chased down by a collection agent, despite your having brought on the matter yourself. A customer might harbor such resentment over the humiliation that they never want to do business with that company again. That's a double whammy for the company.
For those two reasons, businesses hate to sic collection agencies on people. Nevertheless, they are forced to do so every day because they cannot afford to let deadbeats get away with not paying their bills. Businesses recognize that it takes a lot of courage to call a creditor, so they'll repay the favor by helping you out.
Don't think for a moment that you are the first person to get behind on a financial obligation. It happens all the time. In America, amillion people a year declare bankruptcy, a situation that basically allows people to completely renege on their financial promises. I don't believe in bankruptcy and don't recommend it in most situations. It's a little like dieting via liposuction: sure, they can suck out the fat, but unless we change our behavior, we're going to be back in the same bloated position we were in before we had the operation. For this and many other reasons, bankruptcy is not the best choice for most people.
However, paying our bills on time is, and so is talking with our creditors whenever we run into a problem. Virtually every company in business today has a policy of providing a month with aminimum payment - or even no payment - for anyone who gets into trouble. This is not the first time that they will have ever gotten a call like this. They're not going to say, "Ooooh, you bad. You didn't pay your bill.We gonna fix you."What they will say is something to the effect of "Would it be acceptable to make aminimum payment of $15 this month?" In other words, if you extend the courtesy of letting them know your situation, they in turn will be equally courteous and offer options to lighten your load. I have yet to hear of a creditor giving anyone a hard time when they explained honestly that they needed a little help.
If you want to earn a Medal of Honor, make the phone call in front of your high school–age kids. This act requires a certain amount of humility and courage that any child can admire. Parents don't need to be rich to earn their kids' respect. They need only be honest, straightforward, and brave.
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