Do you have people coming after you for money? Most people try to keep debt collectors from finding them. This is not a good answer, though. A better idea would be to get help from debt counselling services and get your finances back on track.
These services talk to your creditors to get discounts, waive late fees, etc. They also combine all of your debts into one big payment, so you only have to make one payment each month instead of several. Also, this payment goes to the debt reduction company, which gives the money to the creditors.
The company that helps you with your debt also stops debt collectors from calling you. No one has to call you or send you bad mail anymore. The only downside is that when you hire such a company, you lose a few credit points. The people who want to lend you money know that it is not completely safe to do so.
But this is better than having a record of always being late or not paying. Most creditors are willing to look past the fact that you changed your interest rates over time because it shows that you are being honest and trying to pay off all your debts. This is what the people who owe money want. They don't want you to file for bankruptcy, that's for sure.
Basically, the debt counselling company acts as a middleman. They take a portion of your monthly payment and may get a rebate from your creditor as well. These companies usually take up to 10% of your monthly payment as their fee. Sometimes, they get you to pay larger monthly payments so that they can get a kickback from your creditors. So, you should make sure you sign up with a company that is known for putting its clients' needs first.
If you miss a payment, you need to know what will happen. After all, it was your habit of not paying bills on time that brought you to them in the first place. Also, choose a company that has been approved by the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. The way these companies do business will be more moral and honest.
Lastly, you need to be more responsible with your money. If you don't pay off your debts, you'll soon get more, so all your work to pay them off will be for nothing.
