Tell bill collectors you're broke

Disclaimer. This article is not financial advice. I am not a financial advisor. This is only from my experiences as an entrepreneur.

I want to continue this conversation regarding Financial Health as it relates to mental health. It is important to understand you do have Alternatives when you do not have the money to pay bills. I believe many people are not aware of these alternatives because it can be easy to be intimidated by bill collectors. There are a few points that you need to understand.

■You are not alone

Think about it. If it was just you being late on your bills, what a company be able to afford payroll for an entire payroll section? They are literally in a call center calling you to remind you to pay your bill. More than likely there are many other customers of theirs that are going through the same thing.

■They give you discounts to get caught up

There have been numerous occasions where I have told a bill collector that I was having financial difficulties. Many times they will offer you a discount to get caught back up to your bills. I've even had vendors knock off a 50% of an entire balance for the sake of getting me caught back up. It is very important to be honest with your bill collectors. 

In my experience, the only ones that are not as lenient are collection agencies. If you are behind and credit cards, bankruptcy may be an option for you. In my opinion it is best to understand the reason why you fell behind in your bills from an emotional standpoint. Think back to what was happening and how it impacted your ability to pay bills on time(death, family circumstances, workplace stress etc).

■They want to keep you as a client 

Take my perspective as a business owner when a client is having financial difficulties. 

From the perspective of a business owner, I am loyal to my long-term clients. I have had many clients who have unforeseen circumstances as it relates to their finances. I have offered many clients discounts and even free services if they needed them during financial difficulties.

The reason I've done this is because I calculated how much that client has given me over a certain amount of years and used logical reasoning. It makes sense for me to give those clients a discount one or two times so that when they do get their financial situation straight they'll not only give me the money back but they'll also send more referrals.

I have a savings club! For those interested, the link is here. You must first be a PAID member of the business curriculum.