Here are top ten tips on how to deal more effectively with your creditors:
1) Don’t hide from your creditors. When you delay or miss payments, naturally your creditors will try to contact you. Never try to hide or ignore your creditors. Ignoring your debts will not solve anything and it can only make matters worse.
2) Contact your creditors. At the first sign of financial trouble, take the initiative to contact your creditors. Do you think you won’t be able to make your payment on time? Inform your creditors right away and don’t be afraid to ask for an adjustment. Usually, creditors would agree not to report your late payment if you notify them in advance and make it up within 30 days.
3) Be Polite. When communicating with your creditors, always exercise courtesy and professionalism. How you talk with your creditors can affect the result of your negotiation. Remember, you’re trying to appeal to your creditor’s consideration. It would not help if you raise your voice or use foul languages.
4) Be Open. It’s important for your creditors to know that there is a valid reason why you failed to keep up with your payments. Are you experiencing financial crisis? Have you been laid off from work? Is there an illness in the family? Are you going through a divorce? You don’t need to explain all the details of your personal life but you need to be honest about your situation. Don’t try to cover up things with lies or make up alibi for your debts.
5) Negotiate. Many borrowers do not even consider a negotiation with their creditors. The truth is, most creditors would be willing to work out a solution if you only ask. Show your creditors that you are willing to pay your debts and that you are taking responsibility over the problem.
6) Write it in a letter. Talking to your creditors by the phone is only the first step. Be sure to get everything in writing. Send your letter of request via registered post mail and keep a record of any form of correspondence between you and your creditor for future references.
7) Stay true to your promises. Do not make a promise that you know you can’t keep. Trust is crucial. Be honest about how much you can afford to pay back and seriously consider the time frame you need before setting a repayment date.
8) Don’t fight with your creditors. Some debtors threaten their creditors with bankruptcy but this may only aggravate the situation. Your goal should be to settle an agreement with your creditor, not a dispute.
9) Don’t keep your creditors waiting. Once a negotiation has been made, do your best to stay true to your agreement. Still, if things don’t go as expected, do not keep your creditor waiting for your action. Contact them in advance and inform them about your situation. Your best bet is to renegotiate.
10) Know your rights as a borrower. The Federal Trade Commission has made provisions for all consumers against creditor harassment and unfair debt collection practices. If you feel that a creditor is violating your rights, do the necessary action. Report them to the FTC.
*More tips: If you’re thinking about seeking debt consolidation or credit card debt consolidation, be cautious on choosing a debt consolidation agency. To be sure, find a government accredited credit counseling agency and ask for a recommendation.
Do you have your own tips to add about this topic? Please share it with everyone by leaving a comment. Thanks=)
