There are times some of us go through when we fall behind with financial commitments we have made. Naturally we feel embarrassed, scared, and alone. Most of us are pretty good at fulfilling the promises we made with lenders but sometimes life hits pretty hard and we are unable to make monthly payments on our debt. There are many reasons for this, for example, you may have been laid off due to economic reasons, health issues may occur, or even a family crisis. Does that matter to lenders? Absolutely not. They want their payments and the interest that come with it.
Fortunately, you’re not alone. If you happen to be going through a rough time with money there is a solution and we are going to go over how to handle this unfortunate situation.
Call your lenders before they call you
When most people start to go through a financial crisis they will usually sit back and wait for lenders to contact them. We suggest you do the opposite and get a hold of debt collectors first and explain to them what is going on with your situation. You can then proceed to work out a different payment plan or give them a date to when you can start paying on your loan again. The main thing with this is to make sure you follow through with your commitment. If you don’t know when you will be back on track and have the money to pay, simply tell them the truth so both parties are on the same page.
Deal with the lenders and not collection agencies
Before your delinquent accounts get passed on to a debt collector you should always try to negotiate with the initial lender you have the loan, though. This way you can avoid the dreaded collection agency who will harass you every day of the week with automated phone calls.
Prioritize your debt
If you ever do get into a predicament where you simply can’t afford to pay credit cards and other debt make sure you take care of the most important assets first. We are talking about your large loans like a house mortgage and car loans. You will want to make sure you pay those first before anything else. The last thing you will want to do is foreclose or go into repossession. That is the type of hits on your credit you never want to see. Not to say you can’t recover from them but it will take a lot more time, money and effort.
Seek out guidance
Like we mentioned earlier you are not alone out here. Reach out to any professional and ask for advice. There are plenty of agencies that deal with this type of problem every day for clients and many of them will be willing to give you a free consultation hoping you come back to them to handle your debt management. Of course, if you have been in a situation for a while and you gained the finances to start paying off collections than we suggest you contact us so we can help you handle debt collectors and maybe even get them to offer lower pay off amounts.