QuickTips: Where To Turn If You’re Having Trouble Paying Your Bills

Don’t ignore your bills if you’re short on money. At the first sign of trouble, contact your creditors to explain your situation. They may be willing to set up an adjusted payment plan until you work through your economic downturn, allowing you to get back on track without negatively affecting your credit report.

Whatever you do, don’t procrastinate. If you let things slide, the resulting negative information stays on your credit report for at least seven years, up to ten years for bankruptcy. And since employers, landlords, and insurers request credit bureau information in addition to lenders, a poor credit record can affect far more than your ability to borrow.

Consider credit counseling. If you’re buried in debt and can’t see a way out, get some help. Contact the nonprofit National Foundation for Consumer Credit (NFCC) (www.nfcc.org or 800-388-2227) for the location of the Consumer Credit Counseling Service office nearest you. The NFCC is a national network of 1300 nonprofit community organizations that provide consumer credit education, free or low-cost confidential budget and debt counseling, and debt repayment programs.

Beware of quick fixes. Avoid so-called credit clinics that promise to repair your credit reports for a substantial fee. The offer may seem tempting, but these credit repair scams can’t fix anything you can’t fix yourself. In fact, no one can have accurate or current information removed from your credit reports, and it’s easy and free to request that credit bureaus correct any inaccurate information you find on your reports. So before you pay for services from these credit repair outfits, some of which parade as nonprofit programs, check with your state Attorney General or local consumer protection agency.