Now that you know how much you can afford to send your creditors each month, you can contact them to try to reduce your costs. Be aware that not all creditors will be willing to work with you, and if your debt is now in the care of a collection agency, you will have a more difficult time trying to reduce your costs.
Bargain With the Debtor
When you call your creditor, you can ask if there is a way to set up a payment plan that works within your budget. Tell your creditor that you are having difficulty making your current payments, and that now that you have late fees added on to your account, the burden has become too great for you. By saying this, your creditor will be assured that you will make payments, and the creditor will want to find a way to insure you will. One way of doing this would be to alleviate your late fees provided you make a payment right away. There is also the possibility that your interest rate will be lowered for the remaining balance if you close your account. If the creditor does not suggest any of these options, go ahead and ask for them.
Get the Info on Your Account
Ask the creditor how much you are spending in interest, and find out how long it would take you to pay off your debt at your proposed payment. Find out if there are any hidden fees, such as yearly fees, additional interest rates for specific purchases, and cash withdrawals.
Transfer Balances From High to Low
If you have more than one credit card with available credit on them, transfer debt from your highest interest rate card to you lowest rate card. When you contact your creditor of your low interest card, ask if you can get any special incentive for transferring debt to that card. If you have no available credit on that low interest card, explain the situation to the creditor, and explain that you would be better able to make payments if you were approved for a high enough limit with the same or lower interest rate.