# Talking to lenders before you fall behind > Call your lenders before you miss a payment; they usually have more options for people who reach out early. First list your income and essentials, and protect housing, utilities and a way to work before unsecured debts. Ask about payment plans, lower interest, paused payments, or for mortgages, forbearance or a loan modification. Get any deal in writing, including how it’s reported. Use free HUD housing counselors or nonprofit credit counselors, and avoid companies charging fees up front. - URL: https://explained.page/talking-to-lenders - Language: en - Last checked: 2026-10-29 - Watch the 1-minute animated guide: https://explained.page/watch?start=talking-to-lenders ## Step by step 1. **Worried you can’t make a payment?** Call before you miss it. Lenders usually have more options for people who reach out early. 2. **Know your numbers first.** Write down what’s coming in and your essentials: housing, utilities, food and getting to work. Then you know what you can truly offer. 3. **Protect the essentials first.** Keep a roof over your head, the lights on, and a way to work. Unsecured debts like credit cards come after. 4. **Call and ask about hardship options.** Ask about payment plans, lower interest, skipping or pausing payments, or for a mortgage, forbearance or a loan modification. 5. **Get the deal in writing.** Ask what you’ll pay, for how long, what happens after, and how it will show on your credit report. 6. **Get free help.** HUD-approved housing counselors help with mortgages for free. Nonprofit credit counselors can help with credit card debt. 7. **Avoid debt relief scams.** Be wary of companies that charge fees before settling any debt or tell you to stop talking to lenders. Many charge a lot and leave you worse off. ## Checklist - Call before you miss a payment - Make a simple budget - Protect housing, utilities and transport - Ask about hardship options - Get the deal in writing - Use free counselors; avoid upfront fees ## Call early Lenders generally have more options before you’re behind. Waiting can mean late fees, credit damage and fewer choices. ## Know your numbers List your income (including unemployment) and essential costs: housing, utilities, food, insurance and transportation to work. See what’s left for debts. ## Priorities Protect housing, utilities and a car you need for work. Unsecured debts like credit cards and medical bills usually come after. ## What to ask for - Payment plans or lower payments for a while. - Lower interest rates or waived fees. - Skipped or paused payments (deferment or forbearance). - For mortgages: forbearance, repayment plans or a loan modification. - For federal student loans: income-driven plans or deferment. ## Get it in writing Ask what you’ll pay, how long it lasts, what happens after, and how it will be reported to credit bureaus. ## Free help - HUD-approved housing counselors for mortgage trouble. - Nonprofit credit counseling agencies for credit card and other debt. ## Avoid scams Be wary of debt relief companies that charge fees before settling any debt, promise to erase debt, or tell you to stop contacting lenders. ## Common questions ### Will a hardship plan hurt my credit? It depends on the lender and plan. Ask how it will be reported. A plan usually hurts less than missed payments. Source page: https://explained.page/talking-to-lenders/questions/will-a-hardship-plan-hurt-my-credit ### Should I use retirement money to pay debts? Usually as a last resort, because of taxes, penalties and lost savings. Talk to a counselor first. Source page: https://explained.page/talking-to-lenders/questions/should-i-use-retirement-money-to-pay-debts ### Should I call my lender before I miss a payment? Yes. Lenders usually have more options before you’re behind, and you avoid late fees and credit damage. Source page: https://explained.page/talking-to-lenders/questions/should-i-call-my-lender-before-i-miss-a-payment ### What is a hardship program? A temporary plan from a lender, like lower payments, lower interest or paused payments, for people facing job loss, illness or other money trouble. Source page: https://explained.page/talking-to-lenders/questions/what-is-a-hardship-program ### What is mortgage forbearance? A temporary pause or reduction in mortgage payments. You’ll usually need to repay the missed amount later through a plan or modification. Source page: https://explained.page/talking-to-lenders/questions/what-is-mortgage-forbearance ### Which bills should I pay first when money is short? Usually housing, utilities, food and transportation to work, then secured debts, then unsecured debts like credit cards. Source page: https://explained.page/talking-to-lenders/questions/which-bills-should-i-pay-first-when-money-is-short ### Are debt settlement companies a good idea? Be careful. Many charge high fees, hurt your credit and don’t settle all debts. Try lenders and nonprofit counseling first. Source page: https://explained.page/talking-to-lenders/questions/are-debt-settlement-companies-a-good-idea ### Where can I get free help with my mortgage? From a HUD-approved housing counseling agency. Their help is usually free. Source page: https://explained.page/talking-to-lenders/questions/where-can-i-get-free-help-with-my-mortgage ## Official sources - [CFPB: trouble paying debts](https://www.consumerfinance.gov/) - [HUD: find a housing counselor](https://www.hud.gov/) - [FTC consumer advice: debt relief scams](https://consumer.ftc.gov/) To find your local office, search for: - "HUD approved housing counselor near me" - "nonprofit credit counseling agency" --- General information, not legal or professional advice. Rules differ by state. From explained.page (www.explained.page). Life’s stuff, explained simply.