Today, I would like to start a series of articles about life after deciding on debt relief. To guide you a bit through this difficult, demanding process of strength, energy and faith.
Prepare you for what can happen and what you will feel about it. And that this is normal. And how to fix it. Each of us knows the euphoria that accompanies New Year’s resolutions. We are full of hope and enthusiasm, we can already see the effects of keeping our resolutions.
It is similar with the implementation of debt relief, or rather the decision to actually get out of debt. At the same time, I would like to point out that when I write a debt relief, I do not mean debt relief services, but the debt relief process implemented by the debtor himself.
I have already written about debt relief companies here. After an email from the reader, with a history of cooperation with one such company, I became their definite enemy.
Returning to the topic and the debtor, who made the decision that he would do anything to get out of debt, he prepared his plan, based on the main principles of “how to get out of debt.” It is full of energy and hope for a better life without debts.
Negotiation of arrears repayment
Letters sent to creditors, prepared budget and debt repayment strategy. As you know, paper will take everything and everything looks beautiful and correct on paper.And suddenly there are stairs for which most debtors are not prepared, and should be prepared. Provide yourself with knowledge or support – in the form of loved ones, therapist or even my humble person.
Dear Ladies and Gentlemen, among many letters repaid to creditors, the majority will receive a negative response. Yes, negative. I have already written about it many times, I tell you about it during our e-mail correspondence. The creditor will most often refuse, because first of all he has his hands connected with the procedures, and secondly, frequent consents to better repayment terms would result in an avalanche increase in overdue payments.
If it were spread that creditors and banks were settling settlements to the right and left – who would like to pay on time? Why pay off debts when the bank agrees to another date?
Does this mean that our debt relief plan has collapsed?
Even if the creditor has not given permission to pay the debt on the proposed terms, there is a high probability that he is ready to agree to your terms, you just have to try harder. You must prove that this commitment you will already see that this time you will keep your word. Show that you are the person who should have a leg, who made mistakes, but drew the right conclusions from them. Prove your honesty and integrity. Try your best. It’s a bit like treason in marriage. Some partners will never forgive and leave immediately, and others will need time and proof that it was a one-time and insignificant leap to the side that will never happen again.
Refusal does not mean that your creditor is already closed.
Persevere, do not break down. You have to try. Put yourself in the position of a creditor (or betrayed spouse). Consider if in their place you would believe the promises or would you need proof. Do your job and if you can do it even more. Stick to the plan, from time to time write to the creditor, informing about the steps taken. My and my students’ experience shows that this strategy is ideal for most banks and most invoice creditors. I will devote a separate entry to the payday companies, although I also recommend sending a repayment plan and sticking to it.