If you are facing a real bad debts situation right now, I have gone through that too. Take a breather and read through some of the tips below:
1. Negotiate and come up with an agreement with creditors – Win Win situation
- Call up your creditors, banks, lawyers to check on the charges that were imposed on you. Draft up a proposal for the creditors on how much you are able to pay monthly. The main point to be taken note is that you are calling them up to finish off your loan. The possibility of them saying NO to you is low. If they refused, don’t not argue and request to speak to the supervisor or the manager in-charged. Make sure to get any agreement in writing as a black and white before making the payment.
2. Consolidating the debt into one account
- You may choose to combine your debt using a debt consolidation which can give you a lower monthly payment. This would also allow repayment over a longer period of time. Ensure that you have done your calculation based on the length of payment given. Average the interest rates on your current debt and look for a loan that has a lower interest rate than your current average.
3. Credit and Debt counseling/ Financial advisor
- These financial advisors are better skilled at negotiating interest rates and payment from the creditors. As they are experience in this field, they will know what the right things to say are. This will allow you to get lower monthly payment easier to pay off your debt. They are also skilled in helping you to make a budget and teach money management skills. You may check out: Debt Management:
4. This is the last resort: Filing for bankruptcy and you should only take this path if the above are not effective enough. There are times when the debts that you owe are just too much to pay. It requires an income-debt comparison in addition to further counseling before you can file for the bankruptcy.
1. Negotiate and come up with an agreement with creditors – Win Win situation
- Call up your creditors, banks, lawyers to check on the charges that were imposed on you. Draft up a proposal for the creditors on how much you are able to pay monthly. The main point to be taken note is that you are calling them up to finish off your loan. The possibility of them saying NO to you is low. If they refused, don’t not argue and request to speak to the supervisor or the manager in-charged. Make sure to get any agreement in writing as a black and white before making the payment.
2. Consolidating the debt into one account
- You may choose to combine your debt using a debt consolidation which can give you a lower monthly payment. This would also allow repayment over a longer period of time. Ensure that you have done your calculation based on the length of payment given. Average the interest rates on your current debt and look for a loan that has a lower interest rate than your current average.
3. Credit and Debt counseling/ Financial advisor
- These financial advisors are better skilled at negotiating interest rates and payment from the creditors. As they are experience in this field, they will know what the right things to say are. This will allow you to get lower monthly payment easier to pay off your debt. They are also skilled in helping you to make a budget and teach money management skills. You may check out: Debt Management:
4. This is the last resort: Filing for bankruptcy and you should only take this path if the above are not effective enough. There are times when the debts that you owe are just too much to pay. It requires an income-debt comparison in addition to further counseling before you can file for the bankruptcy.
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