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Being in financial crisis is a serious mental strain, one that can easily cause you to lash out at anyone involved in your woes. Before you pick up the phone and yell at some lender’s customer support representative though, consider more professional options that can be looked into concerning your debt.

One of these options is to write a credit repair letter to your lenders. These have a number of functions that can help lessen your debt load and the stress that comes along with it.

The first facet of the credit repair letter is to lay out in writing a repayment plan with your lender. This process can lead to reduced debt, erase bad credit, and at a fraction of the cost of what you currently owe. These simple letters can be powerful tools in getting credit companies to see your situation for what it is.

Ultimately they want to recoup as much of their losses as possible and save themselves from having to write it all off as bad debt. This can save you a good deal of money and potentially avoid a devastating process like bankruptcy.

Letters can also be used to halt collection agencies and debt collectors in their tracks. There’s nothing worse than having the spectre of some collector calling you at any moment looming over you, to the point where many people will refuse to take calls from unknown sources. These companies usually buy your debt from the original source, and as such have no real connection or commitment to service on your behalf.

They simply want their money, and they want it now. It’s your right not to be harassed by these collectors though, and a well crafted letter should get them off your back for a good while.

Fraud alert letters are also vital when you suspect or know you’ve been the victim of identity theft. By placing a fraud alert on your credit reports (TransUnion, EquiFax and Experian), you put your account in a position where lending institutions must call you after each transaction to confirm the sale.

Lenders don’t like this, as it gives them additional work to do, but this is your right as a borrower when you feel your identity has been compromised. These alerts must be renewed every 90 days, with multiple personal security companies springing up that will take care of this process for you, among other things, though you can easily do it yourself.

Your credit score is a major component of how you can borrow money and what rates you’ll be charged for doing so, so it’s important to squash any falsely negative information that may be appearing on your report. Write to the credit bureau in question (the three of which are listed above), and explain to them in detail with documents to back up your statements, of any false information on your reports.

Keep a copy of any and all credit letters you send out, as a part of improving any credit score as they are all good evidence that you’re working to establish a good line of communication with lenders in an effort to repair or maintain your credit. The results of these letters may not be seen immediately, but should take effect within no more than a month’s time.