You could avoid deferring bill payments by asking these questions

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Posted at 11:30 PM, May 05, 2020
and last updated 2020-05-06 09:42:48-04

COLORADO SPRINGS — We all know, life is different. Many of you have lost jobs, or income. We also know this won't last.

Colorado will rebound. We will rebuild, and News5 is here to help you every step of the way, finding the information you need to keep going.

Right now, we are offering solutions to make ends meet. There are small steps you can take right now that are big steps.

So here is what you can do to make sure you don't fall behind on bills, like your credit card payments or loan payments.

Talking to your financial institution is the most important thing you can do, and you have the power to negotiate what works best for the both of you.

Keep in mind, if you choose to defer payments, that may bring some relief for now, but interest rates will continue to add up month by month.

While every institution is different, some things you can ask are: Can they lower your monthly payment? If you don't pay now, will they be expecting you to pay in bulk, or can you split that up and add it to your other monthly balances?

You may be surprised at how willing they are to compromise.

"Find out what can be done," Doug Brown with the Welton Financial Group. "They're there to help you. You know, they want to get paid too. People dread the call, [but] those places are actually there to help you stay comfortable and make your payments - most of them are."

Brown mentioned you can actually negotiate your interest rates, too.
Ask your institution if they can agree to lower, or no interest rates for a certain amount of time, while you figure out your financial situation.

Brown stresses, the worse thing you can do is ignore your payments altogether.

He says it's ok to be honest and say you're going through a rough patch, and as long as you're upfront with your institution, you can stay ahead of the game and avoid negative consequences later.