How to Pre-empt Debt Collection Calls?

Unless you have a large amount of savings that can draw one, chances are you will depend on debts for a number of necessities. If you accumulate large enough debt, you will start to have some late payments. People have late payments due to obvious reasons. They need to ensure that water, electricity, food and education get covered. It means that they don’t have enough money left for paying debts. In this situation, you will cringe in fear, anticipating the inevitable collection calls. Instead of anticipating such occurrence, it is a good thing if you are able to buckle up, while preparing a pre-emptive financial strike. Instead of waiting for the call, you need to make a call to inform the lender about your current situation. However, the lender will want to hear some details from you as well.

You should know when you are able to make proper payment. You should list the minimum and balance payments. You should round up any statement and start calling the lender. It is better to call before the due date and the grace period. You should be honest and assume a humble position. If you stars are aligning in the proper situation, you may talk with a rather sympathetic representative who is willing to help you. In reality, many lenders don’t want to lose long-term clients and if you have paid regularly in the past, you will be able to get some helps. If you are unlucky enough to work with a rather unsympathetic representative, it is important to be honest and remind him that you have become a good client. Whatever you do, you need remain helpful, honest and polite.

You should also expect a situation where your attempt is not successful and creditors ask you to make full payment. In this situation, there’s no option than making drastic changes in your lifestyle and expenses patterns. As an example, instead of eating out for lunch and buying a cup of coffee each day; you should bring food and coffee thermos from home. Eating lunch alone in office may not be something that you have in mind, but this is essential if you want to have some extra money. You may also sell expensive, luxurious items that you no longer need. You can use the Internet to sell these items relatively quickly. You should have a copy of latest credit reports and it is important to know that any late payment could affect your score. So, it is better to get approved for delayed debt repayment, instead of having late payments.

If things have become bad enough and you can’t expect to return to normal payment schedule, you may consider extending the period of your debt. This will cause you to spend more on interest rate, but it’s better than having your house, car or other expensive items repossessed. You should have amicable discussion during any of the negotiation process. You should be skilful enough to reach an agreement that’s beneficial for your situation.