When the phone rings do you cringe, worried it's another bill collector? Do you hate going to the mail box because you know another creditor is sending a letter asking for payment? Dreading the mail box and avoiding the phone are no way to live.

Most financial experts agree that dealing with debt isn't easy but the best way to conquer your creditors is to deal with them head on. Let's face it, they already know you are having trouble paying, so what else is there to hide?

E-Loan.com suggests calling creditors in a polite and professional manner. No matter how angry or irritated you may be, you can't let it show. Remember the old saying "you catch more flies with honey than vinegar" (or something like that).

The site also suggests making what it calls a token payment - demonstrating to your creditors that you have every intention of paying what you owe as soon as you have the money at hand.

When you make a payment, always use a money order or check. It's important for you to have a record of payment. Everybody makes mistakes and who knows if someone may forget to enter what you've paid.

Another website, ThirdAge, an online publication for middle-aged adults, suggests negotiating at the end of the month, when many companies are closing out their books and may be in a better mood to settle.

When you call, don't feel the need to give any information about why you need to negotiate a settlement or give a lot of information about your circumstances. Just keep it simple, professional and to the point. Believe me, most creditors could care less about the situation you're in.

If you negotiate paying a lower amount to settle a debt be sure to get the terms in writing. It would be rough to think you have a verbal agreement to pay $600 of a $1000 debt only to have the creditor demand payment for the other $400. And, when you say "but we had an agreement" they say, "I'm sorry, I have no record of that."

The site also suggests that you only consider bankruptcy as your only, only, only hope. It's pretty permanent, and remains as a scar on your credit for 10 years. Additionally, the government recently tightened bankruptcy rules to make it harder for consumers to file.

According to CNN, never be bullied into paying a debt that you truly believe you don't owe. I know, I know, the calls can be annoying, but if you pay the debt to stop the calls, it's the same as admitting guilt and your credit score will pay the price. If you believe you don't owe, send a certified letter in writing requesting a copy of the information the company has showing you owe the debt. You must send the request in writing within 30 days of being notified. The creditor is not allowed to contact you again until you receive a written clarification of the debt in question. I once had a bill collector contact me about a long distance phone bill they say I owed from 6 years earlier when I was in college. They had my address from my college days but my parents phone number. It was all wrong. And, I had married by this time and had my credit pulled for car loans and a home. There was never any mention of this so called debt. I sent my letter in writing requesting more information and guess what, they never responded. And what do you know, the debt has never appeared on my credit report.

Know your rights. Debt collectors are not allowed to call you before 8 a.m. and after 9 p.m. If you choose to wait it out, most debts are wiped away from your credit report after 7 to 10 years - the amount of time varies by state. One really important thing to remember, don't agree to a new credit offer from a company you never repaid. Once the relationship is renewed, the clock starts ticking on your debt all over again.

Additionally, creditors can not threaten you with a lawsuit, wage garnishment, or jail. If you believe you've been treated unfairly, you should contact your local State Attorney General's office or the Federal Trade Commission

Dealing with creditors doesn't have to lead to disaster. Just remember to be professional but firm, know your rights and what you can realistically do to pay back what you owe.