How To Deal With Creditors

If you owe money to someone, be they a credit card company, loan provider or individual, then they are what is known as a creditor.

Being in debt and unable to pay back what you owe to your creditors can be a very uncomfortable situation which will only get worse as time goes by, so here’s how best to handle it.

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Dealing with your creditors

If you owe a debt and are unable to make your repayment, then your creditors themselves, a collection agency or a debt collector will likely be in contact with you.

Calls from your creditors and the people they employ to collect on their behalf, can be extremely stressful, especially as many of these individuals can be aggressive, difficult to deal with and unsympathetic to your situation.

The first thing that you need to do is to know the law because there are a number of things that debt collectors cannot do.

Things debt collectors cannot do


  • Visit your property or call you without first trying to contact you in writing.
  • Threaten you or use abusive language.
  • Contact your employer, friends or family for any reason other than to verify your phone number, address or employment status.
  • Depending on the province you live in, there are restrictions on the number of times that debt collectors or creditors can contact you in a set time period.


What you should do and say to your creditors or a debt collector

As unpleasant as it may be, you cannot hide from your creditors or their collection agents and you must tackle the issue head-on if you want it to go away.

Here are some things that you should do and say in the event that a creditor or a debt collector contacts you:

  • Verify their details

Ask the person their name and where they are calling from and which debt they are contacting you about.

It is important that they are able to verify that the debt is accurate, and if for any reason it isn’t then you should inform them of this.

  • Take notes

Every time you speak with a debt collector or one of your creditors, take notes during the conversation regarding who you spoke to, the date and time, and what you discussed.

This will help you to keep a timeline of events that could come in handy during a future exchange.

  • Try to come to an agreement

Although many creditors and their collection agencies may sound like they are going to be uncooperative, most just want to get their money and will negotiate with you if you are unable to make your payment.

Try to come to an agreement with your creditors by explaining your situation and why you cannot make your payment and see if you can put a payment plan in place.

  • Stay calm

Although tensions may be high and you may be very frustrated it is vital that you try to remain calm.

Don’t raise your voice or use abusive language as this could cause your creditors to refuse to negotiate with you.

What to do if things have gotten too much

If your creditors will not negotiate with you or you simply cannot handle them alone, then you may want to work with a Licenced Trustee, who will be able to contact your creditors on your behalf and to put a plan of action in place to help you pay back what is owed.

As soon as a Licenced Trustee gets in contact with your creditors, all action against you must stop.

To arrange a free and confidential meeting with a local Licensed Trustee today, you can call us on (877) 879-4770 or fill out our online form.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
How to Amend a Consumer Proposal
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
Consumer Proposal Eligibility
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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