When it comes to debt, it has to be understood that it always consists of two parties involved – the creditor who is the source of the loan and the debtor or borrower who is the borrower. If you are a debtor whose credit or credit card account has reached debtors due to default, be prepared to face serious consequences of non-payment.
In any case, we don’t want to frustrate you, because it’s never too late to get your hands on and take back debt repayments, and this will be much easier to do if you have the opportunity to contact and agree on a repayment with the original debt creditor. In fact, you should try to avoid a situation where your debt is passed on to debt collectors or debt collectors. Let us then explain why it is better to settle your debt with the original creditor of the loan before it reaches the debtors,
Best to agree on a late repayment of the loan
So, as we have already mentioned, it is best to agree on a late repayment of the loan directly with your original creditor, rather than with the debt collectors or the debt repurchase agency. Debt collectors often have more aggressive methods of debt collection and sometimes even very extreme. The initial creditor is the one who actually gave you the first money that you now have trouble repaying.
In some cases, the original creditor may even sell your debt to a third party, the so-called debt collectors, who pay them interest on the total debt to be collected. If such a transaction occurs, your debt now belongs to the debt collector and it will have all the right to continue to collect the full amount of the loan, as well as various recovery fees, court fees and interest. Usually debtors choose to go to court against you. If you lose this case, you will get a court judgment, often the greatest possible amount. If you are unable to pay the sum immediately, it may continue to accumulate substantial interest and your credit obligations may be very long, which will make your financial freedom a long-term one. Therefore, in all cases, your best option is to contact the original creditor directly and avoid giving your debt to third parties.
How do you know if your debt has been forwarded?
Most of the debts are handled by the original creditors until they reach about 150 days without any outstanding repayment. If you are late for only two or three months, your debt may still belong to your original creditor. Usually, debtors first receive a warning letter by post, which warns them about the potential for debt to be recovered if no contact is received from you. Therefore, always pay attention to all correspondence coming from your creditor. Ostrich tactics are the worst for unpaid credit. If you are not sure whether you have received a letter or not, do not hesitate and call the creditor.
Even if you are in a controversial situation with a creditor, it is still the most reliable source of information about your debt status. If the creditor indicates that your debt account has already been sold, it is important to contact the debt collection agency immediately and ask them to check their status and amount of your debt. This will ensure that they do not resell your debt and show your willingness to cooperate and willingly repay the debt. However, hopefully your debt will still be with your original creditor, and you will be able to continue negotiating on the debt settlement process directly with them.
Before you make a phone call to ask the creditor to allow you to repay the debt with a smaller monthly amount, you need to develop a strategic negotiation plan. Write down all the strong and weak points so that you have them at your fingertips and you can reasonably present them during the conversation.
If you start to delay payment of debts
You are likely to have serious problems with your personal finances and you did not stop paying for the misappropriation of credit. It is important to mention exactly what you can and cannot afford when it comes to setting a new monthly payment when you talk to your original creditor. For example, if the monthly repayment amount is $ 100, but you have only $ 50 in free monthly funds to repay your debt, then it makes sense for the creditor to present it immediately.
It is not a good idea to give the creditor some sort of empty promise, as if for “good peace”, if you already know that you will not be able to hold them. That’s why it’s important to start negotiating with your final number, which you have previously verified that you will be able to postpone your debt monthly.
Will the creditor accept such conditions? The answer will really depend on each individual creditor, but any creditor will be happier to receive certain guaranteed funds than to keep the debtor who does not pay very much.