Out of Work
and in Debt
become an all-too-familiar headline and lead story - job cuts, dot.com
failures, corporate restructuring and layoffs.
recently lost your job, your first thoughts may be, "how will
I make ends meet." Money matters are a source of stress and
frustration for many people.
If you find that you can't pay your bills on time, contact your
creditors immediately. Try to work out a modified payment plan that
reduces your payments to a more manageable level. Don't wait until
your accounts have been turned over to a debt collector. At that
point, your creditors have given up on you. The federal Fair Debt
Collection Practices Act requires debt collectors to treat you fairly
by prohibiting certain methods of debt collection.
Nonpayment and late payments may affect your credit rating and your
ability to get credit in the future. Although creditors usually
consider a number of factors in deciding whether to grant credit,
most creditors rely heavily on your credit history. That's one reason
it's important to make sure your credit report is accurate. For
example, if your file showed that you were once late in making payments,
but didn't show that you are no longer delinquent, it would be inaccurate.
The credit reporting agency must show that your payments now are
Credit Reporting Act protects you by requiring credit bureaus to
furnish correct and complete information to businesses to use in
evaluating your applications for credit, insurance or a job.