Informal Proposal

If after balancing your monthly budget you still are having difficulty meeting all of your debt obligations, it may be worthwhile to contact your creditors to let them know that you need to develop a repayment plan.

Tell your creditors that you intend to pay back your debts, but you need a bit of wiggle room. Talk to each of your creditors and see if you can reduce the amount of interest or negotiate to pay a bit each week throughout the month (without penalty or additional interest) rather than one lump sum each month. Also, in some situations, creditors may accept a reduced amount if a lump sum is paid.