You might think that avoiding your creditors is the best option, but you might be surprised at what you can achieve if you get in touch with them. Tackling the problem early is probably the best debt management advice you can get.

How to approach your creditors

It's never too late to talk to your creditors. Obviously, the best thing to do is contact them as soon as you know you're gong to have problems paying them back. If your income has gone down because you've had a long bout of ill health, or you're trying to come to terms with a bereavement and can't make all the payments on your own, or need to wait until your divorce is settled before you can sort out your payments, it's always better to say so. Your lenders will appreciate a warning that things won't be easy for you over the next few months, and may be prepared to let you pay less than your normal monthly amount for a while, or suspend payments altogether until you can sort yourself out.

Always keep a record

You may think that it's best to email or call your lenders, and that's fine as long as you keep a record of every contact you have with them. Print off emails, or back them up on a removable disk or memory stick so that you don't lose them if your computer crashes. Make notes of who you speak to when you call your lender – the time and date of your call and the outcome of your conversation. Ask the person you speak to if they can put the details of your conversation in writing to you. You could also ask if it's OK to record your call for your records. If you're writing to your lender, keep a dated copy of the letter you send and make sure you file any reply you get back, along with any letters or documents you receive chasing your payments. Mark your file "Debt Management" so that you know exactly where everything is.

Be Flexible

Like all debt management solutions, talking to your creditors is a two-way process. You must be prepared to offer them a good deal. Start by working out exactly how much you can afford to pay on a regular basis, and offering that amount to your lender. Ask if they can fix your interest rate, or move your debt to a different product to help you take advantage of a better deal. Whatever you agree to, make sure you keep to it so that your lender has no opportunity to chase you for unpaid debts.

Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.