Situations can occur in which unexpected expenses result in an individual getting behind on their paying their debts. In many cases, consolidation loans may be an option which can prevent drastic measures of filing Bankruptcy. Here are a few suggestions of some homework that can be done before contacting creditors for some assistance in reducing your monthly financial burden.

A good place to start is to make a complete list of everything which is currently owed, and how much each months payment is supposed to be. Leave enough room to write in notes about your discussion with those institutions, and allow enough room to put down the name of the person you talked to, and the date of each of your discussions. This information can be of assistance in any future phone calls about your accounts.

They will need to know the total household income, and any other income from a second job, or hobby. If for some reason one of the household wage earners is on medical leave, they need to know this information, as well. Be honest with them about the circumstances involved in getting behind on any monthly payments, and when the situation is expected to improve.

In some cases, a person may have some items which are paid off, and others which still have partial balances. It is important to make a list of all of your assets, and provide the information to any representative who is attempting to help you in reducing your monthly debts. These could include, cars, boats, RVs and other high ticket items.

It is necessary to provide proof of employment for all wage earners who are responsible for paying the debts. They will probably want to know how many years each one has been employed at the stated job, and they might want to call a contact person to verify the information you provide. If you don’t already know the person they should talk to, ask your employer who you need to see about these matters.

Consolidation loans are something you can attempt to negotiate on your own. However, there are companies who specialize in helping people to get their finances back in line with their monthly income, and might be able to achieve better results for the person than they can do on their own. Having a professional company involved as a go between can often help to prove the sincerity of the individual who is seeking financial assistance.