So, now you can see the writing on the wall, you are in up to your neck and your creditors are starting to ring you at home in the evenings too. You are aware that you have to do something, but you’re not sure exactly what. It’s so embarrassing having to talk to that kid from your creditor’s debt collection department, especially over the phone; but you don’t want to take time off work to go down to their offices either! And you can’t wish the problem away. You’ve heard of debt consolidation and reduction and you think you ought to look into it.
However, before you think about debt consolidation and reduction loans, analyse your debts to work out your total debt. Debt is an avenue of credit lines given to you by creditors who felt that you would repay the amount borrowed or owed. When creditors become aware that you are behind on your repayments, they will frequently delay a few weeks before telling the collection agencies.
During this time, you ought to contact your creditors and ask for an extension, balance reduction, or even a complete termination of the sum owed. Creditors expect their balance and therefore, they may extend your credit, since they want to avoid the problems that arise when reporting customers for non-payment.
Creditors do not want to make enemies of their customers, since they hope that the customer will show good faith and pay the debts and continue doing business with them. If you fail to contact your creditors, they will eventually turn your files over to the collection agencies. These agencies often use much more severe methods to retrieve the money owed.
These agencies will go to almost any degree to pressurize you to the point where you find a method to pay up, or else stress you to the point that you are willing to seek professional assistance. Debt consolidation and reduction is one of the methods of eliminating debts; a loan may or may not be required.
When you do speak with your creditors, ask them for leniency, so that you can attempt some manner of debt consolidation and reduction by reducing your outgoings. If the creditors agree to debt consolidation and reduction by lowering your payments, terminating it, or else providing you with an extension and you refuse to take advantage of their offer, ie, if you fail to make repayments after the offer is made, then they will not be as cooperative the next time you speak with them.
Make sure that you make good your debts as stipulated by your creditors to avoid any further complications. Communication is of the utmost importance, because if you have ceased talking to your creditors, they have every right to go all out to retrieve their money. This will assist you in your debt consolidation and reduction.
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