Prioritize your bills. Credit card collection agencies can be rude and persistent if you miss a credit card payment, but missing a mortgage or rent payment could leave you homeless. Figure out what other bills are most important to you.

Contact your creditors before they contact you. When you contact creditors, you need to work with a supervisor, accounts manager or “loss mitigation” specialist who has the ability to negotiate with you. When you call, this may mean getting busy signals or spending time on hold since many others in similar situations may be calling too. If the creditor is local, make an appointment to meet with them in person.

Make specific and realistic offers to creditors. It never hurts to ask for lower payments over a longer time period or payment on interest alone for a set time period. Be honest about what you can afford in your new spending plan and don’t make promises you can’t keep.

Follow up with a letter detailing the arrangements you agreed to with each creditor. Write down the terms of your agreement, including amount and due date, the name of the person you talked to, and the date. Keep a copy for your records.

Contact a credit counseling agency if you need help working with creditors. Be aware that these agencies may charge a fee to help you. You can find a certified credit counseling agency in your area at www.debtadvice.org or 800-388-2227.

Contact UW-Extension Family Living Agent Jenette Gunville, at 715-528-5490, for more information.