Accelerated heart rate. Butterflies in your stomach. Sweaty palms. Congratulations, you’ve officially fallen in…DEBT.
What is it about facing our monetary woes that gets us so anxious? At the end of the day facing the issue can’t be any worse than ignoring it, right? Truth be told, whether or not you have the means to pay off your loans, debtors will come for you regardless and prolonging the issue only makes it worse.

The reality is, debt collectors want to work with you. It’s true! As badly as you want them off your back, they also want to make sure that you cooperate in any way. At the end of the day, the last thing they want is for you to file bankruptcy. You would be surprised to learn that debtors are very keen to the idea of flexible payment arrangements as well as open to waiving many of your accrued interest. In layman’s term- they will take what you can give them, even if that’s an informal promise to cooperate with them in the future. And buying time also buys you peace of mind.

So starting today, make plans to set aside some time to alleviate your stress over dollars and cents, following these 3 steps:

1. Set Aside One Morning Out Of The Week: Most creditors and collection agencies are only open during business days, with the office hours usually being anywhere between 8am-6pm (actual times vary based on zoning). If you want a sure way to feel accomplished by 5pm, start your day off bright and early. My suggestion is to actually treat yourself to a small breakfast or an early morning run, anything to help calm your nerves before placing your calls. I also suggest keeping a cup of coffee or tea near by, along with a bottle of water, to keep you hydrated in between and during phone conversations.

2. Sort your Mail: Similar to sorting your laundry, sorting your letters and emails from your debt collectors is half the battle. Try and do this the night before call placements. The relief that comes with preparing your mail will encourage you to adhere to your plans to call collections in the morning. When doing this, here are two important things to remember:

2a. Sort By Order Of Importance: This usually means placing the higher debt at the top of your priority list. Organize your bills in order of severity. Ladies, for us that might mean calling in for our school loans first, and placing those “pink envelopes” from Victoria’s Secret last.

2b. Sort By Date: Be sure to use the most recent piece of mail received from each provider. This way you have the most current information on your account and you and the representative will both be on the same page.

3. If You Are Currently In Between Jobs: This is the time to call. Do not hold off returning the ‘800 number’ calls for when you are working. Currently being out of work actually allows you a better chance of deferring your loans or at least setting up smaller payments for the time being. This way when you do start working, you still have your loans deferred until a later date, giving you time to use your first few paychecks to catch up on the bills that can’t wait. Also, since payment arrangements are usually “set-in-stone” for the first six to twelve months, you will also have the luxury of still having the lesser payment arrangement for months after you start receiving your new income.
Please keep in mind that you are not alone. As of 2011, approximately 98% of the revolving U.S. debt is comprised solely of consumer credit card loans. Young Americans between the ages of 25-34 have the second highest rate of bankruptcy [X]. So do understand that many of these collection agencies are accustomed to dealing with problems such as yours. Just know that the earlier you reach out to these companies, the better your chances are of having them cooperate with you.

Sincerely,

SOJO