Don’t hide from your bills!

If you are having trouble paying a bill, contact the company immediately to work out a payment plan. Whatever you do, do not ignore letters and calls from your creditors, according to the Kentucky Higher Education Assistance Authority (KHEAA).

It is best to explain everything in a letter so you have a written record. Before writing the letter look at your finances to come up with a payment amount you can handle. That lets your creditor know you still plan to pay what you owe and will pay as much as possible during your financial crunch.

Most companies will work with you if you are up front about your difficulties. Ask if your creditor will waive any penalties and will extend your payment period if you are in a tight money situation.