When dealing with debt, the worst thing that you can do is try to hide from your problems.
If you do not have enough money to pay all of your bills in full, it’s tempting to just hide your head in the sand and hope that things get better.
Here is what will happen if you do that: as soon as you miss a payment, your credit score will drop. Other credit agencies will be notified, and this gives all of your debtors the legal right to raise your interest rates. Even if you are paying them on time and it was someone else that you paid late.
Within a month or two your debt will be reported to collection agencies which will make your credit rating drop even lower. It will be hard for you to get approved to rent a house, to buy a car, to rent a car, to get a cell phone contract, to get approved for refinancing a mortgage, to get a credit card.
At some point your debtors can take you to court and get a judgement against you. This makes your credit rating even worse.
So as you can see, the longer you hide from your money problems, the worse things get.
The best thing to do is call creditors immediately, explain the situation, and try to work out a lower payment plan. Would they rather get half of the payment, or no payment at all? These days, with so many people defaulting on loans, they would rather get some payment than nothing.
It still may hurt your credit rating to have to negotiate reduced payments, or to skip a payment, but if you can at least stop debts from going to collection agencies, to court judgements, even to foreclosure and reposession, you will be better off than if you tried to hide from the problem.