Did you experience a financial hardship this year? Here are a few ways to get back on track in 2014.

Getting out of debt takes budgeting, discipline and doesn't happen overnight.

1) Be honest with your creditors about why you are behind in your bills. If you've been ill, lost your job, or simply overspent, say so. Creditors are eager to work with people who admit they are in trouble and need some help working things out, however not so with delinquent customers who ignore their calls. You'll find it easier to gain extensions by approaching the creditor first, before the late hit. By contacting the creditors first, it demonstrates you care about your financial obligations.

2) After the initial contact, it’s important that you keep in regular contact with creditors—every two weeks or so. This reassures the creditor, shows a responsible attitude toward your obligation and may keep the creditor from harassing you.

3) The moment you become aware that your income will be reduced, contact those creditors who'll be affected. Your first contact should be by phone, followed by a letter confirming your phone conversation. Discuss a plan to maintain your payments until you are back on your feet.

4) Collection agencies have heard every excuse imaginable. They also have, however, a sixth sense that helps them determine a debtor’s sincerity in repaying a debt or obligation so be honest.

5) Attitude is important. If necessary, acknowledge, up until now, your poor handling of finances. Re-affirm your commitment to handling your finances differently now.

6) Don't make payment commitments you cannot honor. Do not tell a collector "what they want to hear"; just to get them off the phone. Your cooperation with them will make a difference in what they report to credit reporting agencies, especially if they receive partial payments.

7) Contact the court if you are making child support or alimony payments under a decree of divorce but are unable to meet the payments due to unemployment or severely reduced income. Contact the clerk of the divorce court and explain your situation as soon as possible. Stay in touch with your ex-spouse to avoid unnecessary legal action. Failing to notify the court of your inability to pay can result in legal problems.

8) Follow up with a written letter of explanation. If ordered to court, contact an attorney. Bring documentation (pink slip or lay-off letter from your employer or union) with you.

9) Do your best to provide what support you can—and keep records. Missed child support payments must be made up. Talk to your ex-spouse or court officer about a repayment plan.

10) Certify that mail. Letters can be lost in the mail. Most experts advise sending all correspondence with debt collectors via certified mail; some suggest getting a return receipt as proof that your letter was received.

• To file a complaint about a debt collector or creditor's in-house collection agency, call the U.S. Federal Trade Commission's toll-free hotline at (877) FTC-HELP or the FTC Web site.
• It's also a good idea to file a complaint with your state consumer protection agency. State laws governing debt collection vary. Find your state attorney general through the National Association of Attorneys General.

For further information regarding financial education, debt payoff and credit restoration, please visit: www.SDCredit-Rx.com