Once you became unemployed, did your bills begin to suffer? Maybe you were able to continue paying your bills for a month of two. But the third or fourth month, you began getting behind a little bit more. You were late in paying one or two of you bills. You are sure the next month this will not happen. You will be prepared when the bills come.

The next month comes along and instead of being behind only on one bill, now you are behind on two bills. Your creditors began calling because this is not your normal pattern. What can you do? Do you ignore the calls out of embarrassment or do you take the call and feel worse after you get off the phone.

There are steps you can take to work with your creditor once you are unemployed. If prior to your unemployment, you were faithfully paying your bills on time the next few steps could be crucial. First, I suggest that you do not avoid the phone call. Some creditors are more determined than others to get someone on the phone. Second, one you are on the phone with the creditor be honest about the situation you are dealing with. Assure them that it is not your intent not to pay your bills. You have found yourself in a situation that you are not used to dealing with. Third, ask them if once you have returned to being employed and paying your bills, if they would be willing to add a statement to your file reflecting your determination and willingness to get your bills paid. You might be surprised that some of your creditors will help you.

This will in turn be looked at when you are seeking new credit and trying to re-establish your credit. If you have not ever looked at your credit report, order it from www.annualcreditreport.com for free once a year. Or you can order it from each of the credit reporting agencies individually. The credit reporting agencies are Experian, TransUnion and Equifax. Realize that these should vary slightly.

If you do not understand how to read your credit report, ask a friend that you trust to read it for you. Or I recommend that you contact your bank and try to meet with the personal banker. They should be able to explain to you how to read it. This will assist you in getting your finances in order. Maybe your credit became bad once you became unemployed, the above strategies should help you.

Dr. Taffy W. Wagner is the author of the Amazon.com Bestseller Debt Dilemma. She is the unemployment editor for Bellaonline.com and the Financial Coach for ChristianLadies.net. Purchase Debt Dilemma at http://www.amazon.com or http://www.paidoff.net.