Give Creditors Your Bank Information

• According to Marchese Law Group, you are not legally obligated to provide your bank account information to creditors, no matter how persistent they are. You might be tempted to show good faith in making a payment on an overdue bill by sending a post-dated check. Doing so is a mistake, as some unscrupulous creditors might deposit the check before the intended deposit date. If you have already given a creditor your bank account number or sent a post-dated check, monitor your bank account closely, and inform your bank of any concerns you have and be ready to dispute any charges you did not authorize.
  
  

Failing to Reduce Expenditures

• If you are heavily in debt and having a difficult time paying your existing bills, reduce your current spending. If you do not do this and continue to spend at the same rate, you risk never getting out of debt. You might get further into debt, which can have disastrous results for your credit in the long-term. You can also create an additional income stream by selling off your extra belongings or by taking a part-time job. In this way, you will not only reduce your spending, but also make it easier for yourself to pay off bills in larger chunks.
  
  

Using a Debt Settlement Firm

• On the surface, a debt settlement company appears to be a favorable option for those heavily in debt. However, high fees, low program completion rates and your risk of being sued by creditors are significant issues with this type of program. According to Aleksandra Todorova of Smart Money, you might pay as much as 35 percent of the full amount you owe, which you must pay before you can start to pay off the actual loan. Debt settlement firms advise clients to stop paying creditors to save money for the settlement.
  
  

Paying the Minimum Amount Due

• If the minimum due is all you can think you can afford, consider the long-term costs. A credit card bill with 20 percent interest and a minimum payment of $15 will accrue $236 over a four-year period before you pay it off. Likewise, if you have a credit card bill of $1,500 dollars at 21 percent interest and only pay $30 per month, it will take you 10 years and a total of $3,596 to pay off. Instead of paying the minimum due, look for ways to reduce spending in other areas of your life so you can increase your payments. You will end up spending less and gain a better credit rating.
  
  

Make Late Payments

• Whether it's a credit card payment or a car payment, if you habitually make late payments, it will hurt your credit score. It will also cost you more money in late fees, keeping you in your financial bind longer. If you know you will have difficulty making your bill payments on time, contact your creditors to make payment arrangements. More often than not, creditors are willing to work with people who take the initiative and follow through than they will with debtors who make little effort.