When you are going through a financial crisis, you should avoid paying the creditor less than you owe. Not only will this negatively affect your credit score, but also you may end up paying more than you have originally anticipated. What you shod do when you find yourself dealing with creditors or debt collectors is to take control of the situation. This practically means that you should not panic. Due to extreme fright, you may end up making costly mistakes. This is the reason why you should calm down when negotiating with creditors. When undertaking an approach to payoff debt, you should keep in mind the following dos and don’ts.

Do seek counselling. When you are involved in a difficult situation that you cannot get out of, it is advisable to seek help. Before you take any measures, you should consider a debt relief service such as Consumer Defense Corporation who can negotiate on your behalf. The likelihood is that there is an agency or a company near you that can help you with your finances. One of the advantages of using this kind of service is the fact that you do not have to deal directly with creditors. Equally important is mentioning that the interest rates you own will significantly decrease.

Do be proactive. One thing to pay attention to is the fact that you should not wait until your financial situation goes from bad to worse. Should this happen, the chances of you getting out of debt are pretty slim. Whether you choose to deal with your creditors yourself or you hire a company to renegotiate the terms, it is important to act as soon as possible. If you show that you are willing to cooperate and pay the sum of money that you owe, creditors will not try to make things difficult for you.

Do not ignore your financial records. The matter of fact is that you will have to prove you are truly unable to pay your debts, which can only be realized with proper documentation. Even though showing bills may not be the most attractive part of the process, it is necessary. Anyone will give you the exact same debt advice. What you have to do is prepare documentation relating to your income, assets and of course existing credit.

Do not make promises that you cannot keep. As mentioned previously, debt collectors are willing to offer you an extension on your payments. The truth is that offering to pay the bills is the main reason why lenders are willing to settle with you. Yet, this does not mean that you should make promises that you know are almost impossible to keep. To put it in other words, you have to make sure that the financial plan is realistic. It is advisable to create a prudent plan taking into consideration that you do not have thousands of dollars lying around. If you are determined to make a promise, you should at least make one that you know you can keep.