So, now you can see the writing on the wall, you are in up to your neck and your creditors are starting to call you at home in the evenings too. You know 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 need to look into it.
However, before you rush into debt consolidation and reduction loans, analyse your debts to work out your total exposure. Debt is a source of credit lines afforded you by creditors who thought that you would repay the sum borrowed or owed. When creditors become aware that you are behind on your repayments, they will often delay a couple of weeks before telling the collection agencies.
At this time, you ought to get in touch with your creditors and request an extension of time, a debt reduction, or even a complete termination of the debt. Creditors do expect to get their money back and therefore, they may extend your credit period, because they want to avoid the problems that crop up when they have to report a customer for a default on payment.
Creditors do not really want to make enemies of their customers, since they expect their customers to show good faith and pay the debts and eventually continue doing business with them. If you fail to contact your creditors, however they will turn your files over to the collection agencies in the end if they have to. These agencies often use much more severe methods to retrieve the money owed.
These agencies will go to almost any lengths to stress you to the point where you find a method to pay, or else stress you to the point that you need to seek professional assistance. Debt consolidation and reduction is a means of eliminating debts, while a loan may or may not be needed.
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 agreed with your creditors to avoid any further complications. Communication is of the utmost importance, because once you have ceased talking to your creditors, they have every right to go all out to recover their money. This will help you in your debt consolidation and reduction. - 29866
However, before you rush into debt consolidation and reduction loans, analyse your debts to work out your total exposure. Debt is a source of credit lines afforded you by creditors who thought that you would repay the sum borrowed or owed. When creditors become aware that you are behind on your repayments, they will often delay a couple of weeks before telling the collection agencies.
At this time, you ought to get in touch with your creditors and request an extension of time, a debt reduction, or even a complete termination of the debt. Creditors do expect to get their money back and therefore, they may extend your credit period, because they want to avoid the problems that crop up when they have to report a customer for a default on payment.
Creditors do not really want to make enemies of their customers, since they expect their customers to show good faith and pay the debts and eventually continue doing business with them. If you fail to contact your creditors, however they will turn your files over to the collection agencies in the end if they have to. These agencies often use much more severe methods to retrieve the money owed.
These agencies will go to almost any lengths to stress you to the point where you find a method to pay, or else stress you to the point that you need to seek professional assistance. Debt consolidation and reduction is a means of eliminating debts, while a loan may or may not be needed.
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 agreed with your creditors to avoid any further complications. Communication is of the utmost importance, because once you have ceased talking to your creditors, they have every right to go all out to recover their money. This will help you in your debt consolidation and reduction. - 29866
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