 TITLE: How to Avoid Late Payments and Protect Your Credit CONTENT: What to Do if You Can't Make a Payment\n--------------------------------------\nThere may come a point when money is especially tight and making all your payments on time seems impossible. In that case, prioritize and strategize. Review your budget to identify any unnecessary expenses that you can reduce or eliminate so you can make your debt payments on time. Also consider various ways to scrape up some cash quickly so you can make the minimum payments, such as finding a side job, selling assets or borrowing money from a friend or family member.\nIf you still can't meet the due dates on your accounts, try these strategies for dealing with different types of accounts:\n*   **Mortgage payments**: There are a number of remedies to explore when you can't send your entire mortgage payment on time, but start with contacting your lender as soon as you know you will miss a payment. If the problem is temporary, a forbearance may work. In this case, the lender agrees to a reduction or even complete suspension of payments for a few months. Longer-term options include loan modification, which allows you to change the terms of the loan with your current lender, and refinancing the loan with a new lender so the payments are more affordable.\n*   **Auto loans**: Before missing a car loan payment, contact the lender and explain that you're at risk of falling behind on your car loan. You may be able to arrange a deferment, which would allow you to skip a small number of payments without penalties or fees. The number of payments you can defer depends on the lender, so don't count on it for repeated delinquencies. If you need permanently reduced payments, consider refinancing the loan to secure a lower interest rate or a longer repayment period.\n*   **Personal loans and credit cards**: If you worry you'll fall behind on these payments, jump on the phone immediately and explain your situation to your card issuer. You may be able to enter into a hardship plan where you send no or lower than normal payments for a few months while keeping your account in good standing.\n*   **Utility and other monthly bills**: Contact your utility company to ask if you can delay a payment for a month or two. If your income is low or you're unemployed, you may qualify for the Low Income Home Energy Assistance Program, which helps individuals and families pay their energy bills. While utility payments typically do not hurt your credit unless an account is sent to collections, it's still important to communicate with your provider to keep your account in good standing and avoid any service disruption. END