One of the most common things I hear when meeting with a customer about their financial situation is something that goes like this: “This whole thing is so confusing to me”, or “they make it so difficult to understand what’s going on, I just want to give up.” This is one of the biggest obstacles that I have seen in helping thousands of customers to manage and succeed in their Debt Management Programs--- the amount (or lack of) knowledge and communication that they have attained with their Creditors. As the old adage goes, Knowledge is Power!! This is certainly true when it comes to managing your debt. In the world of credit, it can become a daunting task to keep on top of everything if you are not informed or organized to begin with. Since 1998, when I first started at Credit Advisors, I have seen the creditor landscape change many times, and each time it did, we had to adapt. One thing has stayed unchanged: The more knowledge you have, the easier, quicker, and less expensive it is to become debt free. The less knowledge you have, the chances are much greater that you will not see the light at the end of the credit tunnel.... When meeting or speaking with someone regarding this subject, I often try to have them follow three simple techniques, to help keep everyone on top of their credit, and their particular situation:

1. Make the Commitment to be Debt Free---- In today’s busy and changing world, it becomes too easy to put your credit situation on the “back burner” while you are trying to handle everything else that is going on in your life. Instead, make an effort to include managing your debts a part of your daily routine: Just like brushing your teeth, or having a cup of coffee in the morning, it will soon become a habit. When that happens, you will experience a renewed level of knowledge and understanding, and your feelings of hopelessness and frustration will begin to abate.... Also, I try to tell people to include managing their debts as part of the “Bigger Picture” in their life--- I am doing this to become Debt Free, and to improve the quality of my life. Therefore, it is one of my top priorities, and I will dedicate the time and resources necessary to make it successful. If you decide to make the Commitment, the task becomes much easier.
2. Get to know who you owe---- Make a list of who you owe money to, and what it is for. Then, create a File for that account, and make sure to keep it updated with any changes. (This is especially important for my third point.) Find out as much information as possible about the company who has your debt: Their Contact name and information, how to make payments, how to request information, or to file a dispute. All of this aids you in being better informed about your debt. Do not be afraid to ask questions, or to request in writing any information that you may need about your account, for example: Invoices, Statements, Reports, PIF Letters, etc. Most importantly, keep the lines of communication open---You do not need to talk to them every day, but you will be surprised at how much easier it is to deal with a collection agency or a law firm for example, if you have track record of making regular inquiries about your account. A good amount would be to make at least one inquiry a month.
3. Prepare for the Unexpected--- Sometimes, even with putting forth your best effort, problems can still arise. Usually these issues have to do with the account changing hands, payments not being correctly credited, or not being able to make a payment on time. For the first two points, this is why it is so important to develop and maintain an accurate File with your Creditors. If a payment has been lost, or your account has been sold to a different company, all you need to do is to send them written proof of your account activity, (check copies, receipts, notification letters, etc) and it will make it much easier for the Creditor to research and correct the problem for you. If you find that you cannot make a payment on time, the best thing to do is to let them know ahead of time, and to also have a plan. Do not just let it slide: The creditors will be much more willing to work with you if you keep them abreast of what is going on. An example would be, “I cannot make my August payment for $100.00, but in September and October I will send in $150.00, to make it up.”

By following these techniques, you’ll be more knowledgeable about your debt, and your pursuit of becoming Debt Free will be a little easier for you.

Very educational, well done Mr. Tophorn.

Very Interesting!
Thank You!

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