How to talk to creditors without making things worse

Research found that 47% of Australian adults with debt, the equivalent of 5.8 million people, have struggled to make repayments in the last 12 months. ASIC 2024

Opening up an email or a letter from creditors chasing you for money can feel intimidating. Some people avoid looking or having a conversation about it without fearing you’re going to make things worse. But talking to creditors doesn’t have to be scary if you approach it the right way. Here are some practical tips from our team of credit repair experts. 

Communication is the key

When you ignore your creditors chasing you for money, things just get worse, and the consequences include late fees, stress and of course, legal action. Creditors always prefer open communication, as it shows you are taking responsibility for your debt. When you talk to them early, you have more options in the form of payment plans, extensions and reduced interest. 

Stay calm and be prepared

The most important thing is to stay calm and ensure you’re prepared for the call. Remember, your creditors aren’t your enemy. Write down what you owe and what you think you can realistically pay back. Take into account your non-negotiables, things like rent and food, and work out your budget. Always remember you can ask questions and take notes along the way. 

Always: 

Be honest: Don’t overpromise and be realistic.

Use normal language: Don’t try to use legal or financial jargon.

Remain polite: Always stay respectful. 

Ask about your options: Ask about payment arrangements, hardship programs and about freezing interest. 

Keep records: Write down who you spoke to, when and the agreement. 

Don’t agree to things on the spot: It’s okay to think about it. 

What not to do: 

• Don’t ignore calls, emails or letters.
• Don’t get aggressive or emotional.
• Don’t give false information. 
• Don’t be pressured into paying back more than you can realistically afford. 

When to seek credit repair services

If you’re feeling overwhelmed or you aren’t getting anywhere with your creditors, it could be time to seek professional help. Credit repair and debt negotiation experts like Fix My Credit can help. We’ll step in on your behalf, and, drawing on our extensive experience, work with your creditors to work through your issues. We take the stress off your shoulders to ensure things don’t get any worse with your finances. 

Credit repair services from Fix My Credit

Talking to creditors doesn’t have to be scary, but it is important to be prepared, honest and calm. Communicating effectively with your creditors is the first step to reducing your stress and taking back your financial freedom. 

For more information on our credit repair services in Australia, contact Fix My Credit for expert help in negotiating with creditors, repairing your credit and clearing a pathway forward.