It is always important to have a fair knowledge about your debts and creditors. When things are not going just fine and you have more than 2 or 3 creditors, then you have to make a perfect plan to pay your debts. You need to identify which of your debts are urgent and which are secondary. Only in this way you can be able to divide the money between the creditors in a more effective way. For instance, let's say that you can manage £ 100 per month and you have three creditors. So, you have to divide your money between three of them in such a way that more money will go to urgent debts and the rest would be divided evenly between the others.
Another thing which you need to keep in mind is the interest rate for each debt. Priority should be given to one with higher rate of interest. Let me explain it in a simpler way. Suppose, you have two debts and for one you are paying 10 percent interest and for second you are paying 15 percent interest. Here, you have to allocate the larger proportion of money to one with 15 percent of interest rate.
The other way to sort things out between different creditors is by explain to them your actual situation. For this reason, you can write them a letter that will explain all the facts and figure to them. Instead of calling them, it is better to write them without you have any objection prosecution, or are about to cut off your electricity or gas. Keep a copy of each letter with you as evidence so that if in future the things ever get to court. The copies of those letters will show your attempts to resolve the matter out. If you call them, still follow it up with a letter. You may express things in a good way in your letter than talking on the phone.
Your tone in the letter should be polite and clear. Explain them the reason why you can not keep up the original level of repayments. You have to be clear and open enough to tell them your problem and tell them that as soon as your financial matters improve you will increase the repayments. It is better to enclose a copy of a chart showing your expenses and income. This may help your creditors to understand your position. By doing so, you are actually taking into confidence your creditors and showing them how reasonable attempts you are making to resolve the problem.
It is not always possible to deal with your creditors, especially if they are more in number. The thing matter is your sensitivity and wise decisions that how you want to handle the situation. It is certainly a great thought to talk to your creditors and explain your problem to them and ask for their co-operation. Taking your creditors into confidence is the key to all the problems.