The past few months have been brutal on America's work force, even worse than economists expected. Besides the recent layoffs, an additional 2.6 million Americans have been out of work for more than six months, according to the U.S. Department of Labor.

"As unemployment rates increase, more Americans are struggling to pay their bills," says Rod Kinnett, a financial center manager at Fifth Third Bank. When his customers are faced with this predicament, he likes to reassure them that they're not alone. But even more important, he likes to reassure them that they have options.

Be up front with your situation
"Most lenders have departments that help people negotiate payment strategies during difficult times," Kinnett says. "But the first step is up to the borrower. They have to talk to their lenders - and the sooner, the better."

People who have a good credit history tend to find more options when negotiating payment strategies. "Lenders may be willing to extend the terms of their loans or lower interest rates. If they are contacted early enough, they can also prevent the situation from affecting customers' credit scores," Kinnett says.

"Lenders become less flexible when customers contact them after missing a payment," he adds. "Negotiating becomes more difficult when matters have already been turned over to a collection agency."

A 'win-win' situation
Working with lenders is a win-win situation. "Mortgage companies, banks and credit card companies typically are willing to make adjustments because they want to get paid," Kinnett says. At Fifth Third, each situation is evaluated on an individual basis.

"If a customer is having trouble with a 30-year mortgage but has already made 10 years of payments, we may be willing to change the term of the loan," Kinnett explains. "For example, we may be willing to reset that mortgage back to 30 years, which would allow the borrower to reduce their monthly payments. (For more tips on negotiating mortgages, read "Maintaining shelter during the storm.")

With credit cards from banks, people may ask their banker to reduce their minimum monthly payment for a few months. "Or, instead of making a minimum payment of 3 percent of your outstanding balance, you could negotiate to only pay interest for several months," he says. If people are having trouble paying several credit cards at once, consolidation may be an option. (For more tips on managing credit, read "Make debt a thing of the past.")

A plan can ease stress
Falling behind on payments can be very difficult emotionally. "It can be helpful to seek credit counseling from a non-profit organization or budgeting advice from a banker," Kinnert says. "Often, the first steps are the hardest. But talking with lenders and establishing a plan can help alleviate much of the stress."

For more tips on managing in uncertain times, contact Fifth Third at (866) 475-4201 or visit 53.com.