Q:

What solutions are available to a person who falls behind on bill payments?

A:

Quick Answer

There is one solution that applies whenever a bill payment of any type is due and there's a shortage of funds to pay it: call the company to whom the payment is owed and request a repayment arrangement. A repayment arrangement may not always be extended; however, other options may be made available.

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Full Answer

If a mortgage payment is due and there's trouble coming up with the funds to pay it, then call the loan servicer as soon as possible and ask what foreclosure prevention options are available for borrowers who have fallen behind, according to the Federal Trade Commission, the nation's consumer protection regulator.

If a car payment is due, call the lender immediately to avoid a possible repossession, or in some cases, to avoid a remote kill switch from going off in the vehicle that disables it. Based on the reason for nonpayment, the lender can offer assistance. For example, the lender may allow for the payment to be deferred by 30 days, or an arrangement could be made whereby the interest rate is raised and the loan is spread over a longer period of time.

If a student loan payment cannot be made, then some solutions are to ask for a deferment or to ask for a graduated repayment plan.

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