So you’re going through a rough time financially, you’re behind on payments, you can’t seem to catch up, and your phone keeps ringing. You know its not your Aunt Judy from Ohio to talk about the weather, its those pesky creditors. So what to? Creditors cannot be ignored, just like debt. Its something that won’t just go away, its something that you eventually have to deal with, even if you are going through financial hardships.

But there are certain laws against creditors on what they can and cannot do to consumers. Most collection agencies do pay attention to the laws, but unfortunately there are many out there who don’t, make unnessary threats, and will take advantage of unsuspecting consumers. Here are some tips on dealing with creditors.

1. Know your rights. Believe it or not, even though you are unable to pay your bills at the moment you stil have rights when dealing with creditors. Most consumers do not know their rights and collection agencies know this. So its important to read the Fair Credit Reporting Act. Its readily available on the web.

2. Ask for a written statement. Anyone can say anything over the phone. It’s important to get a paper trail. When a creditor calls you, ask for a written statement in the mail describing the debt you owe and with whom. Also to get an address and a phone number of the debt collection agency so you know who you’re dealing with. Creditors legally have to send you this information within 30 days of the call.

3. Negotiate. If you simply cannot afford to pay the debt in full, many agencies with work with you to create to a payment plan. Do not settle for the first option they give you, always ask to speak to a supervisor or call them back at a later date. Remember creditors are persistant and will try to get the most out of you as possible. Do not agree to something that you cannot afford.

4. Stay in touch. Igorning the situation will not make anything go away. Let them know you are having trouble making payments and have recieved their letters or phone calls. Even paying a little each month will show that you are trying and not ignorning the situation.

5. Make a budget. Debt will have to be dealt with or repaid eventually. Its important to pay off debt, or at least make an effort. Stick to a monthly budget so you know where you stand financially, and know what you can afford and cannot afford.

Debt can be exhausting and stressful, but there are many ways to deal with it, and often times programs that can help you if you are overwhelmed with debt and simply cannot make the payments and help you deal with your creditors.