When creditors start calling, you often assume that they want their money right away. The truth is, it is possible to negotiate with them for pennies to a dollar. You have to remember that they are running a business and they desire to recover at least some of their money. Allow me to share 5 great tips to get out of debt quickly:

1. Call your creditor when you get behind in your payments. Creditors do not want to write off your debt and sell it for pennies to a dollar. They prefer negotiating with you if they know you're willing to pay your debt.

However, you need to call your creditor right away once you start having difficulty, which usually means when you miss the first payment.

2. Know what your needs are. If your situation is temporary due to an increase of bills from your medical incident or a short-term drop in income, explain to your creditors that the situation is now different.

However, if you can't pay your bills and you don't think your situation is going to change soon, then you may want to consider filing for bankruptcy. While no one takes delight in it, it may be your best option now.

For example, you have lots of debt and your assets are limited, then you should consider filing for bankruptcy. Alternatively, if you don't have income for an extended period, you ought to consult a bankruptcy attorney.

3. Avoid credit counseling agencies. Credit counseling agencies work by taking your money and waiting until you miss sending payments.

Then they try to negotiate with your creditor. They offer a percentage of your payment and keep the difference as their fee. However, there's no assurance that all creditors will work with these agencies. Even the creditors who do will usually offer the consumer a better deal directly.

4. Evaluate the implications of your settlement. Sometimes, your creditor is willing to accept a smaller amount than your debt. Let's say you owe $10,000 but your creditor may accept $8,000 as full payment. The $2,000 can be considered your income, so consult a tax advisor regarding the settlement and possible tax implications.

5. Never threaten your creditors with a lawsuit. A lot of people may advise you to be aggressive and threaten a creditor, in most cases, this is bad advice.

Creditors take a dim view of borrowers who threaten to hire a lawyer and sue them. Here is where the adage, "you can catch more flies with honey than vinegar" really applies.

With these great tips to get out of debt quickly, you will surely be debt free in no time!